EN - Europa · the 2014 annual adjustment of remuneration and pensions of EU officials ......

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Ref. Ares(2014)3905867 - 24/11/2014

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EUROPEAN COMMISSION EUROSTAT Directorate C: National Accounts, Prices and Key Indicators Unit C-3 :Statistics for Administrative Purposes

Luxembourg, 30 October 2014

COMMISSION STAFF WORKING PAPER

Eurostat Report on the 2014 annual adjustment of remuneration and pensions of EU officials

In accordance with Articles 64 and 65 and Annex XI of the Staff Regulations applicable to officials and other servants of the European Union

adjusting with effect from 1 July 2014 the correction coefficients applied to the

remuneration of active staff serving in Intra-EU and Extra-EU duty stations, to the pensions of retired staff, and for pension transfers

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CONTENTS

Executive Summary ................................................................................................................... 2

Introduction ............................................................................................................................... 3

1. Adjustment of remuneration and pensions outside Belgium and Luxembourg.................. 5

2. Correction coefficients for staff outside Belgium and Luxembourg in Intra-EU duty stations................................................................................................................................. 5

3. Correction coefficients for pensioners outside Belgium and Luxembourg ........................ 9

4. Correction coefficients for staff serving outside the European Union.............................. 12

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EXECUTIVE SUMMARY

In accordance with the Articles 64 and 65 and Annex XI of the Staff Regulations applicable to officials and other servants of the European Union, and the special provisions in Annex X applicable to officials serving in a third country, Eurostat hereby presents its report for the twelve months to July 2014.

This is the first annual report submitted in accordance with the EU Staff Regulations as amended by Regulation 1023/2013.

The annual adjustment of remuneration and pensions in Belgium and Luxembourg is temporarily suspended by Article 65(3) of the Staff Regulations which introduced an immediate two year pay freeze for the periods 1 July 2012 - 1 July 2013 and 1 July 2013 - 1 July 2014.

In these circumstances, this report presents only the information required for the annual adjustment of remuneration and pensions outside Belgium and Luxembourg, namely:

- correction coefficients for staff working outside Brussels in Intra-EU duty stations;

- correction coefficients for pensioners living outside Belgium;

- correction coefficients for staff working outside Brussels in Extra-EU duty stations.

The correction coefficients which apply to remuneration outside Belgium and Luxembourg with effect from 1 July 2014 in order to maintain equality of purchasing power, are provided in Tables 5 and 9 for staff serving in Intra-EU and Extra-EU duty stations respectively.

The correction coefficients which apply to pensions outside Belgium and Luxembourg with effect from 1 July 2014 in order to maintain equality of purchasing power, are provided in Table 7.

With the exception of the information about consumption expenditure pattern data which is compiled by Eurostat from direct surveys of staff, all calculations and figures presented in this report are based on Intra-EU data supplied by the responsible national authorities. Corresponding data for Extra-EU duty stations is obtained from responsible national authorities coordinated by Eurostat under the European Comparison Programme (ECP), or collaboration with the International Section on Remuneration and Prices of the Coordinated Organisations (CO.ISRP) and the United Nations International Civil Service Commission (UN.ICSC).

More information about methodology, detailed results and statistical analyses is made available in the appendices to this report. Additional information can be found in detailed procedural manuals.

For any information concerning this report, please contact the Eurostat Remuneration Team in Luxembourg:

Eurostat, Unit C3 Statistics for Administrative Purposes

BECH – A2/004, Bâtiment Jean Monnet L-2920 Luxembourg

Tel.: (352) 4301-34792 Email: [email protected]

mailto:[email protected]

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INTRODUCTION

In accordance with the Articles 64 and 65 and Annex XI of the Staff Regulations applicable to officials and other servants of the European Union, and the special provisions in Annex X applicable to officials serving in a third country, Eurostat hereby presents its report for the twelve months to July 2014.

This is the first annual report submitted in accordance with the EU Staff Regulations as amended by Regulation 1023/20131.

Annex XI of the Staff Regulations describes rules for implementing Articles 64 and 65 of the Staff Regulations, ie. the method for the annual adjustment of remuneration and pension of European officials. These rules are supplemented by special provisions in Annex X applicable to officials serving in a third country, and other relevant legislation and international agreements2. Various procedural manuals to implement these rules have been developed by the Working Group on Articles 64 & 65 of the Staff Regulations which meets periodically in Luxembourg3.

The annual adjustment of remuneration and pensions in Belgium and Luxembourg is temporarily suspended by Article 65(3) of the Staff Regulations which introduced an immediate two year pay freeze for the periods 1 July 2012 - 1 July 2013 and 1 July 2013 - 1 July 2014.

In these circumstances, this report presents only the information required for the annual adjustment of remuneration and pensions outside Belgium and Luxembourg, namely:

- correction coefficients for staff working outside Brussels in Intra-EU duty stations;

- correction coefficients for pensioners living outside Belgium;

- correction coefficients for staff working outside Brussels in Extra-EU duty stations.

Chapters 1 to 3 of this report examine respectively:

• Economic parities between Brussels and other locations outside Belgium and Luxembourg, for staff (intra-EU);

• Economic parities between Belgium and other member states, for pensioners, and;

1 Interim Reports were already prepared in May 2014 with reference Ares(2014)1465311 covering Intra-EU

staff and pensioners for the period 1 July 2013 – 1 January 2014); in April 2014 with reference Ares(2014)1169801 (covering Extra-EU staff for the six months August 2013 – January 2014) and; in September 2014 with reference Ares(2014)3096705 (covering Extra-EU staff for the five months February 2014 – June 2014)

2 These include the Statistical Law (223/2009); the PPP Regulation (1445/2007); the HICP Regulation (2494/1995 et seq); the GDP Regulation (ESA95: 2223/1996, ESA2010: 549/2013); the Transparency Regulation (1049/2001); the 2009 trilateral international memorandum of understanding (Eurostat / UN International Civil Service Commission / International Section on Remuneration and Prices of the Coordinated Organisations); the ILO 1973 Resolution on household surveys; the LFS Regulation (577/1998); the SES and LCS Regulation (530/1999).

3 These include: document A6465/14/26 “methodology for the calculation of specific indicators and control indicators” (version June 2014); document A6465/14/58 “methodology for the calculation of the Joint Index” (version July 2014); document A6465/14/59 “methodology for the calculation of Intra-EU correction coefficients” (version July 2014); document A6465/14/60 “methodology for the calculation of Extra-EU correction coefficients” (version July 2014).

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• Economic parities between Brussels and locations outside the European Union, for staff (extra-EU).

With the exception of the information about consumption expenditure pattern data which is compiled by Eurostat form direct surveys of staff, all calculations and figures presented in this report are based on Intra-EU data supplied by the responsible national authorities. Corresponding data for Extra-EU duty stations is obtained from responsible national authorities coordinated by Eurostat under the European Comparison Programme (ECP), or collaboration with the International Section on Remuneration and Prices of the Coordinated Organisations (CO.ISRP) and the United Nations International Civil Service Commission (UN.ICSC).

More information on methodology, detailed results and statistical analysis is available in the appendices to this report and detailed procedural manuals4.





4 Op cit (3)


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1. ADJUSTMENT OF REMUNERATION AND PENSIONS OUTSIDE BELGIUM AND LUXEMBOURG The value of the annual adjustment for duty station locations outside Brussels (active staff) and places of residence outside Belgium (pensioners) is equal to the product of the annual adjustment for Brussels (active staff) or Belgium (pensioners) multiplied by the change in the economic parities between Brussels and the duty station (active staff) or Belgium and the country (pensioners).

In accordance with Article 65(3) of the Staff Regulations adopted in October 2013, the annual adjustment for Brussels (active staff) or Belgium (pensioners) is zero (ie. a pay freeze) for the period 1 July 2013 - 1 July 2014.

However, in order to maintain equivalence of purchasing power, it is still necessary to take into account changes in economic parities between Brussels and elsewhere.

In accordance with Article 3(5) of Annex XI no correction coefficient is applicable in Belgium or Luxembourg.

2. CORRECTION COEFFICIENTS FOR STAFF OUTSIDE BELGIUM AND LUXEMBOURG IN INTRA-EU DUTY STATIONS5 The object of the economic parities is to compare the relative costs of living of EU officials in Brussels (reference city) with each of the European capitals and other places of employment in the European Union for which a correction coefficient has been set. The method used is to compare the price of a "basket" of goods and services in Brussels with the prices of similar goods and services in each of the other places of employment. The weighted average of all the price ratios is the "economic parity". The average consumption expenditure pattern of EU officials are used as weights, identified by means of periodic surveys of household expenditure. In places of employment outside Brussels with very few officials, a common structure pooling all the questionnaires from similar locations is derived instead.

The changes in the cost of living in the places of employment outside Belgium and Luxembourg are measured by the implicit price indices which are calculated as the product of the Joint Belgium-Luxembourg Index of consumer prices (JBLI) and the changes in the economic parities between Brussels and those other places. Table 4 shows these changes for the year to July 2014.

5 A separate chapter is prepared concerning correction coefficients for duty stations outside the European

Union, to which the additional provisions of Annex X to the Staff Regulations also apply.

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Table 4

Changes in the economic parities in the twelve months to 1st July 2014(for staff)

Country Parity Parity Change Implicit pricePlace of employment 1.7.2013 1.7.2014 (%) index

BE/LU Brussels/Luxembourg 1.000 1.000 0.0% 0.9BG Sofia 1.125 1.078 -4.1% -3.3CZ Prague 20.72 20.58 -0.7% 0.2DK Copenhagen 10.06 9.917 -1.4% -0.5DE Berlin 0.968 0.972 0.5% 1.4

Bonn 0.949 0.946 -0.4% 0.5Karlsruhe 0.928 0.950 2.3% 3.3Munich 1.082 1.077 -0.5% 0.4

EE Tallinn 0.789 0.786 -0.3% 0.6IE Dublin 1.130 1.159 2.5% 3.4EL Athens 0.912 0.868 -4.9% -4.0ES Madrid 0.963 0.945 -1.9% -1.0FR Paris 1.174 1.168 -0.5% 0.4HR Zagreb 5.961 5.874 -1.5% -0.6IT Rome 1.044 1.004 -3.8% -2.9

Varese 0.928 0.931 0.3% 1.2CY Nicosia 0.837 0.812 -2.9% -2.1LV Riga 0.761 0.765 0.5% 1.4LT Vilnius 2.484 2.464 -0.8% 0.1HU Budapest 224.4 220.2 -1.9% -1.0MT Valletta 0.844 0.834 -1.2% -0.3NL The Hague 1.089 1.078 -1.0% -0.1AT Vienna 1.083 1.072 -1.0% -0.1PL Warsaw 3.154 3.075 -2.5% -1.6PT Lisbon 0.831 0.822 -1.1% -0.2RO Bucharest 3.107 3.051 -1.8% -0.9SI Ljubljana 0.854 0.847 -0.9% 0.0SK Bratislava 0.802 0.790 -1.4% -0.5FI Helsinki 1.237 1.230 -0.6% 0.3SE Stockholm 11.64 11.73 0.8% 1.7UK London 1.188 1.205 1.5% 2.4

Culham 0.9179 0.9333 1.7% 2.6

Latvia adopted the Euro with effect 1.1.2014: 2013 PPP restated using fixed conversion rate

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The correction coefficients applicable to the salaries of the European institution officials working in the capitals and places of employment other than Brussels and Luxembourg are determined on the basis of the relationships between the economic parities and the exchange rates for the month of July.

The correction coefficient operates as a percentage adjustment to salaries to take account of the cost of living differences between Brussels and the various duty stations.

Table 5 shows the calculation of the correction coefficients at July 2014 for places of employment situated in the European Union territory for which correction coefficients have been set.

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Table 5Calculation of correction coefficients at 1st July 2014

(for staff)

Country Parity Exchange rate Correction coefficient

Place of employment [1] [2] 100 * [1] / [2]

BE/LU Brussels/Luxembourg 1.000 1.000 100.0BG Sofia 1.078 1.956 55.1CZ Prague 20.58 27.46 75.0DK Copenhagen 9.917 7.457 133.0DE Berlin 0.972 1.000 97.2

Bonn 0.946 1.000 94.6Karlsruhe 0.950 1.000 95.0Munich 1.077 1.000 107.7

EE Tallinn 0.786 1.000 78.6IE Dublin 1.159 1.000 115.9EL Athens 0.868 1.000 86.8ES Madrid 0.945 1.000 94.5FR Paris 1.168 1.000 116.8HR Zagreb 5.874 7.573 77.6IT Rome 1.004 1.000 100.4

Varese 0.931 1.000 93.1CY Nicosia 0.812 1.000 81.2LV Riga 0.765 1.000 76.5LT Vilnius 2.464 3.453 71.4HU Budapest 220.2 308.6 71.4MT Valletta 0.834 1.000 83.4NL The Hague 1.078 1.000 107.8AT Vienna 1.072 1.000 107.2PL Warsaw 3.075 4.152 74.1PT Lisbon 0.822 1.000 82.2RO Bucharest 3.051 4.388 69.5SI Ljubljana 0.847 1.000 84.7SK Bratislava 0.790 1.000 79.0FI Helsinki 1.230 1.000 123.0SE Stockholm 11.73 9.196 127.5UK London 1.205 0.7997 150.7

Culham 0.9333 0.7997 116.7

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3. CORRECTION COEFFICIENTS FOR PENSIONERS OUTSIDE BELGIUM AND LUXEMBOURG The Staff Regulations stipulate the creation of correction coefficients for pensioners separate from those used for adjusting the remuneration of active staff6. The difference is that instead of being based on capital city price comparisons they relate to national comparisons, with Belgium as the base country.

Their use is subject to specific rules set out in the Staff Regulations.

This section presents the calculated values of the economic parities and the correction coefficients for pensioners. The changes in the cost of living in Member States other than Belgium and Luxembourg are measured by the implicit indices which are calculated as the product of the Joint Belgium-Luxembourg Index of consumer prices (JBLI) and the changes in the economic parities between Belgium and the Member States.

Table 6 shows these changes for the year to July 2014.

6 This requirement was introduced by Council Regulation 723/2004

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Table 6Changes in the economic parities in the twelve months to 1st July 2014

(for pensioners)

Country Parity Parity Change Implicit price1.7.2013 1.7.2014 (%) index

BE/LU 1.000 1.000 0.0% 0.9BG 1.112 1.095 -1.5% -0.7CZ 19.36 19.35 -0.1% 0.8DK 9.862 9.794 -0.7% 0.2DE 0.965 0.964 -0.1% 0.8EE 0.792 0.801 1.1% 2.0IE 1.058 1.063 0.5% 1.4EL 0.917 0.847 -7.5% -6.7ES 0.913 0.902 -1.1% -0.2FR 1.092 1.071 -1.9% -1.0HR 5.590 5.469 -2.2% -1.3IT 0.979 0.945 -3.5% -2.7

CY 0.869 0.858 -1.3% -0.4LV 0.737 0.748 1.6% 2.5LT 2.454 2.456 0.1% 1.0HU 197.8 197.5 -0.1% 0.8MT 0.845 0.842 -0.3% 0.6NL 1.056 1.047 -0.8% 0.0AT 1.048 1.044 -0.4% 0.5PL 2.851 2.805 -1.6% -0.7PT 0.851 0.852 0.1% 1.0RO 2.778 2.800 0.8% 1.7SI 0.806 0.814 0.9% 1.9SK 0.732 0.731 -0.2% 0.7FI 1.149 1.145 -0.4% 0.5SE 10.89 10.66 -2.1% -1.3UK 0.9683 0.9651 -0.3% 0.6

Latvia adopted the Euro with effect 1.1.2014: 2013 PPP restated using fixed conversion rate

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Table 7 shows the correction coefficients calculated for pensioners for all member States (relative to Belgium) at July 2014.


(for pensioners)

Country Parity Exchange rate Correction coefficient

[1] [2] 100 * [1] / [2]BE/LU 1.000 1.000 100.0

BG 1.095 1.956 56.0CZ 19.35 27.46 70.5DK 9.794 7.457 131.3DE 0.964 1.000 96.4EE 0.801 1.000 80.1IE 1.063 1.000 106.3EL 0.847 1.000 84.7ES 0.902 1.000 90.2FR 1.071 1.000 107.1HR 5.469 7.573 72.2IT 0.945 1.000 94.5CY 0.858 1.000 85.8LV 0.748 1.000 74.8LT 2.456 3.453 71.1HU 197.5 308.6 64.0MT 0.842 1.000 84.2NL 1.047 1.000 104.7AT 1.044 1.000 104.4PL 2.805 4.152 67.6PT 0.852 1.000 85.2RO 2.800 4.388 63.8SI 0.814 1.000 81.4SK 0.731 1.000 73.1FI 1.145 1.000 114.5SE 10.66 9.196 115.9UK 0.9651 0.7997 120.7

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4. CORRECTION COEFFICIENTS FOR STAFF SERVING OUTSIDE THE EUROPEAN UNION The Staff Regulations stipulate the creation of correction coefficients for staff serving in duty stations outside the European Union separate from those used for adjusting the remuneration of active staff within the European Union7. An important difference from the values established for Intra-EU locations is that expenditure on housing, on education, and on healthcare is not taken into account because Annex X makes specific arrangements for these. Price data for remaining expenditure items is taken from “place-to-place” surveys undertaken in collaboration with the United Nations International Civil Service Commission (UN.ICSC) and the International Section on Remuneration and Prices of the Coordinated Organisations (CO.ISRP). This is used to establish economic parities with Brussels, which are subsequently updated using published national consumer price indices (CPI), relative to the Joint Belgium-Luxembourg Index of consumer prices (JBLI). Another important difference is that in accordance with Annex X of the Staff Regulations, correction coefficients are only applied at the specific request of the EU official, irrespective whether they are above or below 100.

This section presents the calculated values of the economic parities and the correction coefficients for extra-EU staff. Information is compiled for a list of 1448 duty stations, however economic parities are not presented where data is unavailable or unreliable due to local instability or other reasons. The total changes in the cost of living are measured by the implicit indices which are calculated as the product of the Joint Belgium-Luxembourg Index of consumer prices (JBLI) and the changes in the economic parities between Brussels and the duty station concerned.

Table 8 shows these changes for the year to July 2014.

7 This requirement was introduced by Council Regulation 3019/87 8 One new duty station country since July 2013: Somalia

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Code Country City Jul-14 Jul-13July 2014-July 2013

127 (3) Afghanistan Kabul 0 0128 Albania Tirana 84.56 82.78 2.249 Algeria Algiers 74.36 75.76 -1.897 (4) Angola Luanda 188.8 172.1 9.770 (3) Argentina Buenos Aires 0 0

133 Armenia Yerevan 424.3 423.1 0.385 Australia Canberra 1.470 1.485 -1.0

135 Azerbaijan Baku 1.025 1.024 0.171 Bangladesh Dhaka 67.08 60.05 11.768 (4) Barbados Bridgetown 2.974 3.182 -6.5

142 Belarus Minsk 8208 7263 13.087 Belize Belize (Belmopan) 1.915 1.882 1.837 Benin Cotonou 622.9 657.7 -5.372 Bolivia La Paz 6.792 6.241 8.8

303 Bosnia and Herzegovina Banja Luka 1.190 1.217 -2.2228 Bosnia and Herzegovina Sarajevo 1.407 1.438 -2.236 Botswana Gaberone 6.238 6.062 2.94 (4) Brazil Brasilia 3.030 2.581 17.479 (4) Burkina Faso Ouagadougou 648.9 626.2 3.635 Burundi Bujumbura 1425 1261 13.0

143 Cambodia Phnom Penh 4481 4352 3.069 Cameroon Yaounde 612.9 606.2 1.19 (5) Canada Ottawa 1.283 1.189 7.981 Cape Verde Praia 77.78 78.24 -0.634 Central African Republic Bangui 695.9 666.9 4.365 Chad Ndjamena 745.8 736.8 1.244 Chile Santiago 403.6 437.2 -7.774 China Beijing 7.596 7.605 -0.1

118 Colombia Bogota 2213 2142 3.357 Comoros Moroni 334.3 371.0 -9.933 Congo Brazzaville 783.5 799.9 -2.188 (4) Costa Rica San Jose 584.4 631.9 -7.5

148 Croatia Zagreb 5.795 5.821 -0.4149 (1) Cuba Havana 0.9925 0.9525 4.243 (1) Democratic Republic of Congo Kinshasa 1.838 1.944 -5.532 Djibouti Djibouti 181.3 214.2 -15.454 Dominican Republic Santo Domingo 36.44 33.21 9.7

117 (1) Ecuador Quito 0.9862 0.9947 -0.913 Egypt Cairo 6.036 5.680 6.3

152 (1) El Salvador San Salvador 0.9548 0.956 -0.1236 (4) Eritrea Asmara 23.69 24.67 -4.031 Ethiopia Addis Ababa 24.25 21.89 10.823 Fiji Suva 1.649 1.639 0.6

229 Former Yugoslav Republic of Macedonia Skopje 35.89 36.47 -1.676 Gabon Libreville 697.9 648.2 7.751 Gambia Banjul 32.61 31.22 4.5

157 Georgia Tbilisi 1.572 1.543 1.939 Ghana Accra 2.378 2.075 14.6

119 Guatemala Guatemala City 8.160 8.092 0.898 Guinea Conakry 7449 6980 6.745 Guinea-Bissau Bissau 586.5 605.6 -3.230 Guyana Georgetown 177.0 179.8 -1.6

Table 8Changes in the economic parities in the twelve months to 1st July 2014

(for staff serving in Extra- EU delegations)

EconomicParities

EconomicParities

CHANGE (in %)

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77 Haiti Port-au-Prince 50.35 48.81 3.299 Honduras Tegucigalpa 21.70 20.69 4.9

105 Hong Kong Hong Kong 10.72 10.45 2.6307 (5) Iceland Reykjavík 173.8 157.5 10.380 India New Delhi 53.48 49.68 7.6

300 Indonesia Banda Aceh 9731 9094 7.040 Indonesia Jakarta 10711 9932 7.8

163 (3) Iraq Baghdad 0 038 (4) Israel Tel-Aviv 4.747 5.076 -6.529 Ivory coast Abidjan 645.7 634.6 1.7

100 Jamaica Kingston 134.2 123.8 8.48 (5) Japan Tokyo 139.4 144.0 -3.250 (4) Jordan Amman 0.8586 0.924 -7.1

301 Kazakhstan Astana 200.6 196.4 2.128 Kenya Nairobi 94.74 92.28 2.7

304 Kosovo Pristina 0.7168 0.7282 -1.6168 Kyrgyzstan Bichkek 50.77 48.77 4.1171 Laos Vientiane 9408 9166 2.62 Lebanon Beirut 1589 1570 1.227 Lesotho Maseru 6.871 6.479 6.146 (1) Liberia Monrovia 1.372 1.504 -8.8

308 (3) Libya Tripoli 0 047 (4) Madagascar Antananarivo 2734 2429 12.626 Malawi Lilongwe 321.1 251.9 27.5

121 Malaysia Kuala Lumpur 3.088 3.066 0.7104 Mali Bamako 657.6 663.7 -0.991 Mauritania Nouakchott 243.9 239.9 1.790 Mauritius Port Louis 32.50 31.65 2.778 (5) Mexico Mexico City 11.82 12.66 -6.6

185 Moldova Chisinau 11.27 10.66 5.7187 Montenegro Podgorica 0.6414 0.6349 1.01 Morocco Rabat 7.826 7.845 -0.225 Mozambique Maputo 32.85 31.95 2.8

311 Myanmar Yangon 780.3 745.8 4.6113 Namibia Windhoek 9.199 8.744 5.260 Nepal Kathmandu 93.34 85.32 9.4

106 New Caledonia NouMea 130.6 133.4 -2.1190 New Zealand Wellington 1.741 1.730 0.659 Nicaragua Managua 18.88 18.44 2.462 Niger Niamey 535.4 543.2 -1.4

126 (4) Nigeria Abuja 200.4 214.8 -6.7103 (5) Norway Oslo 10.92 10.38 5.241 Pakistan Islamabad 71.00 65.63 8.2

194 (1) Panama Panama City 0.8911 0.8445 5.522 Papua New Guinea Port Moresby 3.838 3.68 4.3

195 Paraguay Asuncion 3997 3776 5.961 Peru Lima 3.315 3.138 5.6

108 Philippines Manilla 42.56 44.45 -4.3114 Russia Moscow 51.00 47.88 6.521 Rwanda Kigali 708.2 696.0 1.842 (4) Samoa Apia 2.723 2.969 -8.348 Saudi Arabia Riyadh 3.504 3.645 -3.920 (4) Senegal Dakar 677.8 610.3 11.1

231 Serbia Belgrade 83.95 83.27 0.819 (4) Sierra Leone Freetown 6878 6948 -1.0

207 (4) Singapore Singapore 2.054 1.990 3.2101 Solomon Islands Honiara 11.92 11.60 2.8

EconomicParities

EconomicParities

CHANGE (in %)

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18 Somalia Mogadishu 0 0124 South Africa Pretoria 7.152 6.702 6.773 (5) South Korea Seoul 1367 1473 -7.2

224 (4) South-Sudan Juba 3.558 064 Sri Lanka Colombo 124.2 122.9 1.163 (4) Sudan Khartoum 8.689 5.479 58.694 Suriname Paramaribo 2.783 2.649 5.117 Swaziland Mbabane 7.447 7.019 6.1

235 (5) Switzerland Bern 1.469 1.520 -3.482 Switzerland Geneva 1.503 1.536 -2.17 (3) Syria Damascus 0 0

216 Taiwan Taipei 33.51 33.79 -0.8215 Tajikistan Duschanbe 4.51 4.274 5.515 Tanzania Dar es Salaam 1441 1467 -1.86 Thailand Bangkok 32.70 32.88 -0.5

302 (1)(4) Timor Leste Dili 1.400 1.588 -11.866 Togo Lome 557.1 545.3 2.258 Trinidad and Tobago Port-of-Spain 6.772 6.945 -2.556 Tunisia Tunis 1.474 1.391 6.067 (5) Turkey Ankara 2.183 2.249 -2.9

309 Turkmenistan Ashkhabad 2.396 2.208 8.516 Uganda Kampala 2507 2459 2.0

220 Ukraine Kiev 8.681 8.002 8.5310 (4) United Arab Emirates Abu Dhabi 3.984 0112 United States New York 1.252 1.246 0.510 (5) United States Washington 1.079 1.212 -11.05 Uruguay Montevideo 28.79 26.25 9.7

192 Uzbekistan Tachkent 2359 1582 49.153 Vanuatu Port Vila 134.8 143.8 -6.33 Venezuela Caracas 11.93 7.313 63.1

125 Vietnam Hanoi 15962 15308 4.3234 West Bank — Gaza Strip East Jerusalem 5.255 5.344 -1.755 Yemen Sana a 261.2 239.9 8.996 Zambia Lusaka 7.368 6.854 7.514 (3) Zimbabwe Harare 0 0

(1) 1 euro = USD (Cuba, El Salvador, Ecuador, Liberia, Timor Leste, Panama, Dem Rep Congo)(2) Brussels = 100%(3) Not available (7 duty stations)(4) UN P2P processed (18 Duty Stations )(5) OECD PPP processed (9 Duty stations )

EconomicParities

EconomicParities

CHANGE (in %)

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Table 9 shows the correction coefficients for all extra-EU duty stations (relative to Belgium) calculated at July 2014.

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Code Country City Jul-14 Jul-14 Jul-14127 (3) Afghanistan Kabul 0 0 0.0128 Albania Tirana 84.56 140.200 60.349 Algeria Algiers 74.36 108.102 68.897 (4) Angola Luanda 188.8 132.977 142.070 (3) Argentina Buenos Aires 0 0 0.0133 Armenia Yerevan 424.3 556.270 76.385 Australia Canberra 1.470 1.44600 101.7135 Azerbaijan Baku 1.025 1.06822 96.071 Bangladesh Dhaka 67.08 105.616 63.568 (4) Barbados Bridgetown 2.974 2.73859 108.6142 Belarus Minsk 8208 13870.0 59.287 Belize Belize (Belmopan) 1.915 2.71719 70.537 Benin Cotonou 622.9 655.957 95.072 Bolivia La Paz 6.792 9.41142 72.2303 Bosnia and Herzegovina Banja Luka 1.190 1.95583 60.8228 Bosnia and Herzegovina Sarajevo 1.407 1.95583 71.936 Botswana Gaberone 6.238 12.0192 51.94 (4) Brazil Brasilia 3.030 2.99050 101.3

79 (4) Burkina Faso Ouagadougou 648.9 655.957 98.935 Burundi Bujumbura 1425 2104.54 67.7143 Cambodia Phnom Penh 4481 5523.50 81.169 Cameroon Yaounde 612.9 655.957 93.49 (5) Canada Ottawa 1.283 1.45560 88.1

81 Cape Verde Praia 77.78 110.265 70.534 Central African Republic Bangui 695.9 655.957 106.165 Chad Ndjamena 745.8 655.957 113.744 Chile Santiago 403.6 749.972 53.874 China Beijing 7.596 8.46890 89.7118 Colombia Bogota 2213 2569.89 86.157 Comoros Moroni 334.3 491.968 68.033 Congo Brazzaville 783.5 655.957 119.488 (4) Costa Rica San Jose 584.4 742.937 78.7148 Croatia Zagreb 5.795 7.57300 76.5149 (1) Cuba Havana 0.9925 1.36200 72.943 (1) Democratic Republic of Congo Kinshasa 1.838 1.36200 134.932 Djibouti Djibouti 181.3 242.056 74.954 Dominican Republic Santo Domingo 36.44 59.0950 61.7117 (1) Ecuador Quito 0.9862 1.36200 72.413 Egypt Cairo 6.036 9.75670 61.9152 (1) El Salvador San Salvador 0.9548 1.36200 70.1236 (4) Eritrea Asmara 23.69 20.7603 114.131 Ethiopia Addis Ababa 24.25 26.5854 91.223 Fiji Suva 1.649 2.50564 65.8229 Former Yugoslav Republic of MacedonSkopje 35.89 61.6863 58.276 Gabon Libreville 697.9 655.957 106.451 Gambia Banjul 32.61 57.0500 57.2157 Georgia Tbilisi 1.572 2.40900 65.339 Ghana Accra 2.378 4.08380 58.2119 Guatemala Guatemala City 8.160 10.6115 76.998 Guinea Conakry 7449 9537.04 78.145 Guinea-Bissau Bissau 586.5 655.957 89.430 Guyana Georgetown 177.0 282.325 62.7



EconomicParities

ExchangeRate (1)

Correction Coefficients

(2)

EN 18 EN

Code Country City Jul-14 Jul-14 Jul-14

77 Haiti Port-au-Prince 50.35 61.9572 81.399 Honduras Tegucigalpa 21.70 28.5433 76.0105 Hong Kong Hong Kong 10.72 10.5573 101.5307 (5) Iceland Reykjavík 173.8 154.850 112.280 India New Delhi 53.48 81.8630 65.3300 Indonesia Banda Aceh 9731 16369.0 59.440 Indonesia Jakarta 10711 16369.0 65.4163 (3) Iraq Baghdad 0 0 0.038 (4) Israel Tel-Aviv 4.747 4.67080 101.629 Ivory coast Abidjan 645.7 655.957 98.4100 Jamaica Kingston 134.2 150.486 89.28 (5) Japan Tokyo 139.4 138.0900 100.9

50 (4) Jordan Amman 0.8586 0.965658 88.9301 Kazakhstan Astana 200.6 249.760 80.328 Kenya Nairobi 94.74 119.029 79.6304 Kosovo Pristina 0.7168 1.00000 71.7168 Kyrgyzstan Bichkek 50.77 70.9029 71.6171 Laos Vientiane 9408 10927.0 86.12 Lebanon Beirut 1589 2053.22 77.4

27 Lesotho Maseru 6.871 14.4394 47.646 (1) Liberia Monrovia 1.372 1.36200 100.7308 (3) Libya Tripoli 0 0 0.047 (4) Madagascar Antananarivo 2734 3208.74 85.226 Malawi Lilongwe 321.1 541.045 59.3121 Malaysia Kuala Lumpur 3.088 4.37540 70.6104 Mali Bamako 657.6 655.957 100.391 Mauritania Nouakchott 243.9 408.930 59.690 Mauritius Port Louis 32.50 41.1444 79.078 (5) Mexico Mexico City 11.82 17.7087 66.7185 Moldova Chisinau 11.27 19.0345 59.2187 Montenegro Podgorica 0.6414 1.00000 64.11 Morocco Rabat 7.826 11.2075 69.8

25 Mozambique Maputo 32.85 42.2600 77.7311 Myanmar Yangon 780.3 1317.74 59.2113 Namibia Windhoek 9.199 14.4394 63.760 Nepal Kathmandu 93.34 131.12 71.2106 New Caledonia NouMea 130.6 119.332 109.4190 New Zealand Wellington 1.741 1.55420 112.059 Nicaragua Managua 18.88 35.3468 53.462 Niger Niamey 535.4 655.957 81.6126 (4) Nigeria Abuja 200.4 211.439 94.8103 (5) Norway Oslo 10.92 8.36800 130.541 Pakistan Islamabad 71.00 134.336 52.9194 (1) Panama Panama City 0.8911 1.36200 65.422 Papua New Guinea Port Moresby 3.838 3.30583 116.1195 Paraguay Asuncion 3997 5985.99 66.861 Peru Lima 3.315 3.81905 86.8108 Philippines Manilla 42.56 59.6600 71.3114 Russia Moscow 51.00 45.8969 111.121 Rwanda Kigali 708.2 928.137 76.342 (4) Samoa Apia 2.723 3.10321 87.748 Saudi Arabia Riyadh 3.504 5.10750 68.620 (4) Senegal Dakar 677.8 655.957 103.3231 Serbia Belgrade 83.95 115.545 72.719 (4) Sierra Leone Freetown 6878 5967.19 115.3207 (4) Singapore Singapore 2.054 1.70150 120.7101 Solomon Islands Honiara 11.92 9.82683 121.3

ExchangeRate (1)


(2)

EconomicParities

EN 19 EN

Code Country City Jul-14 Jul-14 Jul-14

18 Somalia Mogadishu 0 0 0.0124 South Africa Pretoria 7.152 14.4394 49.573 (5) South Korea Seoul 1367 1380.96 99.0224 (4) South-Sudan Juba 3.558 4.01790 88.664 Sri Lanka Colombo 124.2 177.165 70.163 (4) Sudan Khartoum 8.689 8.10479 107.294 Suriname Paramaribo 2.783 4.49460 61.917 Swaziland Mbabane 7.447 14.4394 51.6235 (5) Switzerland Bern 1.469 1.21620 120.882 Switzerland Geneva 1.503 1.21620 123.67 (3) Syria Damascus 0 0 0.0

216 Taiwan Taipei 33.51 40.7109 82.3215 Tajikistan Duschanbe 4.51 6.71017 67.215 Tanzania Dar es Salaam 1441 2251.16 64.06 Thailand Bangkok 32.70 44.2210 73.9

302 (1)(4) Timor Leste Dili 1.400 1.36200 102.866 Togo Lome 557.1 655.957 84.958 Trinidad and Tobago Port-of-Spain 6.772 8.59430 78.856 Tunisia Tunis 1.474 2.28050 64.667 (5) Turkey Ankara 2.183 2.89440 75.4309 Turkmenistan Ashkhabad 2.396 3.88170 61.716 Uganda Kampala 2507 3538.38 70.9220 Ukraine Kiev 8.681 16.1832 53.6310 (4) United Arab Emirates Abu Dhabi 3.984 4.9912 79.8112 United States New York 1.252 1.36200 91.910 (5) United States Washington 1.079 1.36200 79.25 Uruguay Montevideo 28.79 31.1081 92.5

192 Uzbekistan Tachkent 2359 3149.35 74.953 Vanuatu Port Vila 134.8 130.534 103.33 Venezuela Caracas 11.93 8.56984 139.2

125 Vietnam Hanoi 15962 29051.5 54.9234 West Bank — Gaza Strip East Jerusalem 5.255 4.67080 112.555 Yemen Sana a 261.2 292.680 89.296 Zambia Lusaka 7.368 8.28275 89.014 (3) Zimbabwe Harare 0 0 0.0

(1) 1 euro = USD (Cuba, El Salvador, Ecuador, Liberia, Timor Leste, Panama, Dem Rep Congo)(2) Brussels = 100%(3) Not available (7 duty stations)(4) UN P2P processed (18 Duty Stations )(5) OECD PPP processed (9 Duty stations )

EconomicParities

ExchangeRate (1)


(2)

EN 20 EN

Appendix 1 to the Eurostat Report on the Annual Adjustment of

Remuneration and Pensions

Explanations and statistical analyses

Reference period: Year to 1 July 2014

Statistical Office of the European Union Unit C3, Statistics for administrative purposes Luxembourg October 2014

EN 21 EN

CONTENTS

1. EQUIVALENCE OF PURCHASING POWER OF EU OFFICIALS IN THE MEMBER STATES ...... 23

1.1 Economic parities and correction coefficients....................................................... 23

1.2 Rents and rent parities ............................................................................................ 24

1.3 Purchasing power parities - analysis of results ..................................................... 32

1.3.1 Major changes in the economic parities from 2013 to 2014...................................... 32

1.3.2 Impact of changes in the expenditure weights ........................................................... 32

1.3.3 Impact of new parities derived from price surveys.................................................... 32

1.3.4 Impact of indexation .................................................................................................. 33

1.3.5 Impact of new rent parities......................................................................................... 33

1.4 Changes in the cost of living (Joint Belgium-Luxembourg Index) ...................... 38

2. EQUIVALENCE OF PURCHASING POWER OF EU PENSIONERS IN THE MEMBER STATES ... 39

2.1 Economic parities and correction coefficients ................................................................... 39

2.2 Purchasing power parities for pensioners - analysis of results........................................... 44

2.2.1 Main changes in the economic parities from 2013 to 2014 ............................................ 44

2.2.2 Impact of rents on the overall parity for pensioners........................................................ 44

2.3 Comparison of correction coefficients for active staff and pensioners ....................... 47

3. EQUIVALENCE OF PURCHASING POWER OF EU OFFICIALS OUTSIDE THE EUROPEAN UNION......................................................................................................................... 49

3.1 Economic parities and correction coefficients ............................................................... 49

EN 22 EN

INTRODUCTION This document is an appendix to the 2014 Eurostat report on the annual adjustment of remuneration and pensions. While the principal results concerning correction coefficients for staff and pensioners are presented in the main report, the purpose of this appendix is to give some explanations and statistical analyses of the results as well as detailed tables with statistical information. Chapters 1, 2 and 3 of this document examine respectively:

• the economic parities and correction coefficients for staff (Intra-EU);

• the economic parities and correction coefficients for pensioners;

• the economic parities and correction coefficients for staff (Extra-EU).

With the exception of the information about consumption expenditure pattern data which is compiled by Eurostat from direct surveys of staff, all calculations and figures presented in this report are based on Intra-EU data supplied by the responsible national authorities. Corresponding data for Extra-EU duty stations is obtained from responsible national authorities coordinated by Eurostat under the European Comparison Programme (ECP), or collaboration with United Nations International Civil Service Commission (UN.ICSC) and International Section on Remuneration and Prices of the Coordinated Organisations (CO.ISRP).

More information about methodology, detailed results and statistical analyses can be found in detailed procedural manuals9.





9 Op cit (3)


EN 23 EN

1. EQUIVALENCE OF PURCHASING POWER OF EU OFFICIALS IN THE MEMBER STATES 1.1 Economic parities and correction coefficients The object of the economic parities is to compare the relative cost of living of European officials in Brussels (reference city) and in each of the capitals and other places of employment for which a correction coefficient has been set. The method used is to compare the price of a "basket" of goods and services purchased by the average official in Brussels with the price of the same basket in each of the other places of employment. The average of all the price ratios is the "economic parity".

The system works as follows: the total range of goods and services constituting the consumption of the average European institution official is divided into 80 basic headings (such as meat, footwear, electricity supply, motor cars, telephone communications, books). A price ratio between the place of employment and Brussels is established for each of these headings; this is called the basic parity. Price surveys are conducted on products selected to represent the basic heading and specified in the necessary detail to enable prices in a sufficiently narrow range to be collected.

The Staff Regulations require each basic parity to be checked by direct survey at least once every five years. In practice checks are carried out at shorter intervals as part of the European Comparison Programme (ECP). At each annual salary review around one third of the basic price parities are replaced by new parities produced by the latest price surveys.

The 80 basic parities are then updated using the ratio between the harmonised index of consumer prices (HICP) for the country in which the place of employment is located and the Joint Brussels-Luxembourg Index of consumer prices (JBLI).

Housing is dealt with differently. Special rent surveys of estate agents are carried out each year at each place of employment, including Brussels, to calculate an economic parity for the basic heading "accommodation costs for tenants". The calculation follows a methodology that has been developed by Eurostat in collaboration with the national statistical institutes of the Member States, based on the principle that the parity used should be calculated in such a way to allow European institution officials outside Brussels to live in dwellings of comparable quality to those occupied by European institution officials in Brussels. The basic parity "accommodation costs of owner-occupiers" is calculated by reference to the rent the owner-occupiers would pay if they were tenants (these are known as "imputed rents").

In order to calculate the overall economic parities weights have to be applied to each basic heading according to its relative importance in the consumption basket. These weights are calculated directly from the results of the special family budget surveys conducted among European and international civil servants every five to seven years. The resulting structure reflects the consumption of the average international civil servant in Brussels and in each country or place of employment.

Using the 80 basic parities and the specific weights the overall parity is calculated in two ways: the first uses the consumption pattern for the reference city (Brussels) (this is a type of Laspeyres index); the second uses the consumption pattern for the place of employment (this is a type of Paasche index). In accordance with the standard practice for international comparisons both types of index are calculated and the geometric mean of the results (the Fisher index) is used as the economic parity.

EN 24 EN

The correction coefficients applicable to the salaries of the European institution officials working in the capitals and places of employment other than Brussels and Luxembourg, which are calculated for the month of July, are determined on the basis of the relationships between the economic parities and the exchange rates fixed by the Commission and specified in the Staff Regulations for the relevant countries. The correction coefficient operates as a percentage adjustment to salaries to take account of the cost of living differences between Brussels and the various duty stations.

The details of the economic parities calculation, at the level of 12 main consumption groups, are shown in table 3.1 for all capitals and other places apart from Brussels and Luxembourg. This table also includes information about the consumption weights by country and by expenditure groups.

1.2 Rents and rent parities Changes in the rent parities are provided in the Table 3.2 which shows also the average rents by type of dwelling on which the calculation is based. The average rents used to compute the rent parities are in fact weighted moving averages, based on a six-year model, to take into account the average occupancy length, which is estimated to be six years. Any annual updating of rents during the life of the typical lease is included in the model by using the appropriate adjustment indices.

EN 25 EN

Table 3.1 (Continued on next page)Economic parities of the 12 main expenditure groups for each duty station

1.07.2014(for staff)

Expenditure BE BG-Sofia CZ-Prague DK-Copenhagen DE-Berlin DE-Bonn DE-KarlsruheGroups Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 128.2 149.1 1.326 128.3 20.14 122.5 9.390 104.6 0.993 104.6 0.993 104.6 0.9812 20.3 27.4 1.334 26.9 23.41 25.7 9.76 23.2 0.853 23.2 0.853 23.2 0.9113 54.3 56.4 1.444 45.0 22.93 43.0 8.108 49.1 0.865 49.1 0.865 49.1 0.9024 297.6 252.1 0.8265 309.4 23.75 340.7 11.63 248.8 0.998 248.8 0.908 248.8 0.9075 74.7 77.7 1.025 69.9 17.94 66.7 7.481 89.6 0.902 89.6 0.915 89.6 0.9006 19.2 12.6 1.069 13.8 16.71 13.2 9.374 15.4 0.929 15.4 0.701 15.4 0.8967 127.2 121.7 1.440 128.5 22.32 122.7 9.84 180.9 1.075 180.9 1.079 180.9 1.0828 21.5 22.2 1.128 16.7 21.30 16.0 5.853 21.0 0.670 21.0 0.679 21.0 0.6639 91.7 102.9 1.320 106.5 21.67 101.7 9.104 134.8 1.042 134.8 1.056 134.8 1.02810 14.7 12.7 0.3420 15.3 10.45 14.6 11.22 13.7 1.290 13.7 1.290 13.7 1.29011 100.6 104.5 0.7968 87.9 13.08 83.9 10.23 77.9 0.864 77.9 0.862 77.9 0.87012 50.0 60.9 1.434 51.5 21.40 49.2 10.37 41.0 0.922 41.0 0.914 41.0 0.964

Rents 237.1 203.0 0.7891 265.4 25.02 298.7 11.80 198.0 1.003 198.0 0.879 198.0 0.868Total w ithout rents 762.9 797.1 1.172 734.6 19.31 701.4 9.314 802.0 0.964 802.0 0.965 802.0 0.974

Global parity 1000.0 1.078 20.58 9.92 0.972 0.946 0.950

Expenditure BE DE-Munich EE-Tallinn IE-Dublin EL-Athens ES-Madrid FR-ParisGroups Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 128.2 104.6 0.993 135.3 0.828 85.1 1.050 142.1 0.920 120.8 0.826 98.6 0.9932 20.3 23.2 0.853 28.4 0.973 19.7 1.752 28.7 1.094 22.8 0.828 20.7 0.9883 54.3 49.1 0.865 47.5 0.934 55.5 0.818 48.8 0.842 40.6 0.866 50.8 0.9654 297.6 248.8 1.322 271.9 0.719 223.8 1.447 189.7 0.808 244.0 1.032 285.0 1.5595 74.7 89.6 0.939 73.7 0.739 95.6 0.836 109.2 0.796 91.5 0.882 89.2 1.0866 19.2 15.4 0.858 14.6 0.747 21.3 1.085 19.7 0.746 17.0 0.783 14.1 0.9247 127.2 180.9 1.124 135.5 0.933 165.5 1.159 142.2 1.137 135.6 1.107 153.1 1.0678 21.5 21.0 0.765 17.6 0.541 14.6 0.821 23.1 1.056 20.3 1.171 20.4 0.8329 91.7 134.8 1.077 112.3 0.939 135.1 1.043 96.8 0.924 96.4 1.006 118.7 1.06910 14.7 13.7 1.290 16.2 0.264 48.4 1.445 19.8 0.559 38.4 0.858 14.6 1.00911 100.6 77.9 0.950 92.7 0.746 63.8 1.095 118.7 0.698 119.2 0.797 71.7 1.06112 50.0 41.0 0.945 54.3 0.794 71.6 1.311 61.3 0.791 53.4 0.896 63.1 1.056


Global parity 1.077 0.786 1.159 0.868 0.945 1.168

EN 26 EN

Table 3.1 (Continued on next page)Economic parities of the 12 main expenditure groups for each duty station


Expenditure BE HR-Zagreb IT-Rome IT-Varese CY-Nicosia LV-Riga LT-VilniusGroups Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 128.2 161.0 6.433 123.4 1.037 136.7 1.149 151.6 0.969 131.4 0.789 132.5 2.5222 20.3 29.6 7.272 20.0 1.054 20.9 0.942 27.8 1.031 27.6 0.978 27.8 2.9883 54.3 60.9 5.728 48.9 0.980 47.3 0.955 57.3 0.852 46.1 0.920 46.5 3.1044 297.6 192.3 5.997 242.0 1.071 219.8 0.769 239.4 0.584 292.6 0.758 286.7 2.4245 74.7 84.0 4.903 96.0 0.931 92.6 1.013 79.1 0.825 71.6 0.661 72.2 2.3756 19.2 13.6 4.852 20.2 1.054 23.9 1.077 12.8 0.974 14.2 0.757 14.3 2.5447 127.2 131.4 7.219 145.5 0.968 153.4 1.001 123.7 1.086 131.7 0.871 132.8 2.8988 21.5 24.0 4.791 16.6 0.854 16.2 0.856 22.6 0.430 17.1 0.648 17.3 1.7119 91.7 111.1 5.916 115.5 1.021 115.5 1.048 104.6 1.059 109.1 0.812 110.1 2.87510 14.7 13.7 4.674 21.9 1.015 19.8 1.015 12.9 0.785 15.7 0.315 15.8 0.91311 100.6 112.9 4.692 89.3 0.896 93.4 0.802 106.3 0.813 90.1 0.669 90.8 1.88012 50.0 65.7 5.440 60.7 0.986 60.5 0.973 61.9 0.816 52.8 0.793 53.2 2.467


Global parity 5.874 1.004 0.931 0.812 0.765 2.464

Expenditure BE HU-Budapest MT-Valletta NL-TheHague AT-Vienna PL-Warsaw PT-LisbonGroups Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 128.2 137.2 228.2 148.4 0.905 101.5 0.875 135.7 1.107 131.7 2.686 117.0 0.7862 20.3 25.2 212.5 27.2 1.095 18.1 1.005 24.9 0.946 27.6 3.998 16.0 0.8523 54.3 51.9 215.1 56.1 0.873 45.7 0.919 51.3 0.854 46.2 3.064 44.9 0.8094 297.6 311.6 256.2 255.3 0.755 254.2 1.266 319.4 1.214 291.3 3.714 268.1 0.7445 74.7 71.6 179.3 77.4 0.857 95.6 0.923 70.8 0.982 71.7 2.633 83.6 0.8156 19.2 11.6 189.4 12.5 0.925 8.6 1.161 11.4 1.038 14.2 2.321 11.6 0.8287 127.2 112.0 264.1 121.1 0.981 165.7 1.203 110.7 1.087 131.9 3.127 151.1 1.0738 21.5 20.5 273.1 22.1 0.641 19.7 0.975 20.2 0.887 17.2 2.447 18.1 0.9769 91.7 94.7 225.7 102.5 0.874 120.3 1.025 93.6 1.067 109.3 3.297 101.2 0.92010 14.7 11.6 93.40 12.6 0.670 28.2 0.950 11.5 0.915 15.7 1.206 28.1 0.975511 100.6 96.2 143.3 104.1 0.759 86.6 1.029 95.1 0.929 90.2 2.639 105.2 0.70212 50.0 56.0 191.6 60.6 0.778 55.8 1.045 55.4 1.032 52.9 2.917 55.1 0.753


Global parity 220.2 0.834 1.078 1.072 3.075 0.822

EN 27 EN

Table 3.1 (Continuation)Economic parities of the 12 main expenditure groups for each duty station


Expenditure BE RO-Bucharest SI-Ljubljana SK-Bratislava FI-Helsinki SE-StockholmGroups Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 128.2 137.4 2.914 139.9 0.884 141.7 0.841 124.8 1.160 127.4 10.192 20.3 25.2 3.190 25.7 0.940 26.0 0.847 26.2 1.578 26.8 13.363 54.3 52.0 3.307 52.9 0.874 53.6 0.842 43.8 1.011 44.7 9.9024 297.6 310.7 3.420 298.0 0.819 289.1 0.849 328.4 1.437 314.2 14.905 74.7 71.7 2.571 73.0 0.760 73.9 0.685 68.0 1.022 69.4 9.6456 19.2 11.6 2.894 11.8 0.701 11.9 0.659 13.4 0.988 13.7 9.4677 127.2 112.1 3.424 114.2 0.974 115.7 0.798 125.0 1.174 127.6 10.908 21.5 20.5 2.287 20.9 0.751 21.1 1.033 16.3 0.694 16.6 6.5429 91.7 94.8 3.154 96.6 0.941 97.8 0.874 103.6 1.200 105.8 10.8810 14.7 11.7 1.005 11.9 0.650 12.0 0.361 14.9 1.190 15.2 10.6211 100.6 96.3 2.038 98.1 0.726 99.4 0.605 85.5 1.184 87.3 11.6512 50.0 56.1 4.322 57.1 0.899 57.8 0.787 50.1 1.297 51.2 11.21

Rents 237.1 265.4 3.784 251.8 0.808 242.3 0.894 285.5 1.503 270.5 15.72Total w ithout rents 762.9 734.6 2.850 748.2 0.859 757.8 0.761 714.5 1.146 729.6 10.63

Global parity 3.051 0.847 0.790 1.230 11.73

Expenditure BE UK-London UK-CulhamGroups Weight Weight Parity Weight Parity Consumption groups:

1 128.2 110.0 0.8105 98.5 0.80532 20.3 26.2 1.288 19.5 1.284 1. Food and non-alcoholic beverages3 54.3 55.0 0.6747 47.3 0.6718 2. Alcoholic beverages and tobacco4 297.6 314.6 2.124 287.7 1.029 3. Clothing and footw ear5 74.7 69.3 0.9229 86.3 0.9087 4. Housing, w ater, electricity, gas and other fuels6 19.2 12.2 0.6942 6.0 0.6942 5. Furnishings, household equipment and maintenance of house7 127.2 124.7 1.071 153.1 0.9882 6. Health8 21.5 16.5 0.8587 19.0 0.8577 7. Transport9 91.7 99.7 0.9116 130.4 0.9027 8. Communications10 14.7 25.3 1.443 22.0 1.443 9. Recreation and culture11 100.6 100.2 0.8628 60.0 0.8675 10. Education12 50.0 46.4 0.9924 70.2 0.9243 11. Hotels, cafes and restaurants

Rents 237.1 270.2 2.687 235.5 1.111 12. Miscellaneous goods and servicesTotal w ithout rents 762.9 729.8 0.9035 764.5 0.8854

Global parity 1.205 0.9333

EN 28 EN

Table 3.2 (Continued on next page)

Country 3 bedroom flat 2 bedroom flat 1 bedroom flat

Place of employment (140-160m²) (110-130m²) (80-100m²) (80-100m²) (60-80m²) (60-80m²) (40-60m²)

BE Brussels 2013 1,658 1,308 1,071 1,037 829 818 6562014 1,698 1,346 1,101 1,020 836 809 662

BG Sofia 2013 - 538 - 382 - 266 -2014 - 684 - 432 - 309 -

CZ Prague 2013 - 31,886 - 22,283 - 16,975 -2014 - 31,222 - 22,250 - 16,639 -

DK Copenhagen 2013 - 14,750 - - 9,833 - 7,6922014 - 16,243 - - 10,394 - 7,964

DE Berlin 2013 - 1,344 - 999 - 795 -2014 - 1,383 - 1,037 - 800 -

Bonn 2013 - 1,188 - 889 - 721 -2014 - 1,259 - 923 - 737 -

Karlsruhe 2013 - 1,094 - 823 - 665 -2014 - 1,186 - 891 - 716 -

Munich 2013 - 1,908 - 1,458 - 1,134 -2014 - 1,932 - 1,458 - 1,134 -

EE Tallin 2013 - - 946 - 639 - 4702014 - - 968 - 728 - 530

IE Dublin 2013 - 1,693 - - 1,278 - 9952014 - 1,949 - - 1,492 - 1,131

EL Athens 2013 1,105 - - 763 - 555 -2014 1,245 - - 790 - 630 -

ES Madrid 2013 - 1,313 - - 960 - 7442014 - 1,243 - - 931 - 710

FR Paris 2013 - 2,464 - 1,834 - - 1,1302014 - 2,444 - 1,808 - - 1,084

HR Zagreb 2013 - 1,067 - 800 - 544 -2014 - 1,079 - 792 - 545 -

IT Rome 2013 - 1,610 - 1,228 - 968 -2014 - 1,667 - 1,256 - 1,028 -

Varese 2013 - 867 - 673 - 519 -2014 - 856 - 652 - 519 -

CY Nicosia 2013 - 670 - 542 - 432 -2014 - 661 - 493 - 372 -

*Rent values collected in Euro rather than local currency in BG, HR, RO. Parity re-expressed in local currency.*Latvia adopted Euro 1.1.2014: values for earlier years converted using exchange rates.

(Values expressed in Euro, except local currencies: CZ, DK, LT, HU, PL, SE, UK)*Changes in the average rents of accommodation in the twelve months to 1st July 2014

Rent value for dwelling type for year in question is average of reported values.

EN 29 EN

Table 3.2 (Continued from previous page)

Country 3 bedroom flat 2 bedroom flat 1 bedroom flat

Place of employment (140-160m²) (110-130m²) (80-100m²) (80-100m²) (60-80m²) (60-80m²) (40-60m²)

BE Brussels 2013 1,658 1,308 1,071 1,037 829 818 6562014 1,698 1,346 1,101 1,020 836 809 662

LV Riga 2013 - 1,285 - 897 - 677 -2014 - 1,294 - 967 - 694 -

LT Vilnius 2013 - - 2,895 - 2,223 - 1,7102014 - - 2,965 - 2,330 - 1,755

HU Budapest 2013 - 350,335 - - 217,865 - 134,3232014 - 378,130 - - 232,743 - 141,623

MT Valletta 2013 - 903 - 635 - - 4582014 - 984 - 693 - - 490

NL The Hague 2013 - 1,731 - 1,362 - 1,054 -2014 - 1,836 - 1,370 - 1,025 -

AT Vienna 2013 - 1,536 - 1,134 - 917 -2014 - 1,560 - 1,161 - 910 -

PL Warsaw 2013 - 5,312 - 4,109 - - 2,5242014 - 4,536 - 3,510 - - 2,233

PT Lisbon 2013 922 - - 688 - 554 -2014 969 - - 719 - 603 -

RO Bucharest 2013 - 1,125 - 791 - - 4582014 - 908 - 712 - - 452

SI Ljubljana 2013 - 943 - 761 - - 5202014 - 842 - 689 - - 470

SK Bratislava 2013 - 1,047 - 863 - 628 -2014 - 1,125 - 842 - 634 -

FI Helsinki 2013 - - 1,873 - 1,395 - 1,0542014 - - 1,923 - 1,339 - 1,066

SE Stockholm 2013 - 22,968 - 17,864 - 14,168 -2014 - 24,200 - 19,184 - 14,344 -

UK London 2013 - - 2,903 - 2,147 - 1,6362014 - - 2,687 - 2,068 - 1,553

Culham 2013 - - 1,186 - 1,013 - 7922014 - - 1,098 - 982 - 820


(Values expressed in Euro, except local currencies: CZ, DK, LT, HU, PL, SE, UK)*Changes in the average rents of accommodation in the twelve months to 1st July 2014


EN 30 EN

Table 3.2 (Continued on next page)

Country Non-detached houses Detached houses

Place of employment (140-160m²) (110-130m²) (80-100m²) (190-220m²) (150-180m²) (110-140m²)

BE Brussels 2013 1,685 1,377 1,047 2,315 1,870 1,5142014 1,696 1,375 1,105 2,396 1,944 1,539

BG Sofia 2013 - - - 869 - - 0.86632014 - - - 932 - - 0.7891

CZ Prague 2013 - 34,900 - - 49,506 - 26.242014 - 33,778 - - 50,306 - 25.02

DK Copenhagen 2013 - 16,300 - - 22,500 - 11.792014 - 15,833 - - 22,708 - 11.80

DE Berlin 2013 - 1,369 - - 2,112 - 0.9762014 - 1,425 - - 2,195 - 1.003

Bonn 2013 - 1,200 - - 1,738 - 0.8552014 - 1,250 - - 1,852 - 0.879

Karlsruhe 2013 - 1,242 - - 1,810 - 0.8422014 - 1,330 - - 1,845 - 0.868

Munich 2013 - 1,996 - - 3,094 - 1.3732014 - 1,991 - - 2,842 - 1.413

EE Tallin 2013 - 983 - - 1,270 - 0.7442014 - 1,055 - - 1,455 - 0.734

IE Dublin 2013 - - 1,622 - - 2,116 1.4282014 - - 1,947 - - 2,456 1.582

EL Athens 2013 - 983 - - 1,270 - 1.0382014 - 1,055 - - 1,455 - 0.856

ES Madrid 2013 1,596 - - 2,415 - - 1.1762014 1,594 - - 2,293 - - 1.106

FR Paris 2013 - 2,292 - - - - 1.7602014 - 2,409 - - - - 1.755

HR Zagreb 2013 - 1,334 - 2,078 - - 6.6632014 - 1,250 - 1,970 - - 6.631

IT Rome 2013 - 1,546 - 2,093 - - 1.3342014 - 1,406 - 2,156 - - 1.188

Varese 2013 - 1,145 - 1,875 - - 0.7892014 - 1,176 - 1,717 - - 0.771

CY Nicosia 2013 845 - - 1,295 - - 0.5692014 828 - - 1,295 - - 0.540


Changes in the average rents of accommodation in the twelve months to 1st July 2014(Values expressed in Euro, except local currencies: CZ, DK, LT, HU, PL, SE, UK)*


Dwelling type weights in Brussels and in duty stations are identified by periodic housing surveys.Rent parity uses a six year model of these averages, updated by indices, applying taper weights.

Rent Parity

EN 31 EN

Table 3.2 (Continued from previous page)

Country Non-detached houses Detached houses

Place of employment (140-160m²) (110-130m²) (80-100m²) (190-220m²) (150-180m²) (110-140m²)

BE Brussels 2013 1,685 1,377 1,047 2,315 1,870 1,5142014 1,696 1,375 1,105 2,396 1,944 1,539

LV Riga 2013 1,517 - - 2,222 - - 0.8142014 1,491 - - 1,791 - - 0.813

LT Vilnius 2013 - 3,193 - - 4,714 - 2.6182014 - 3,321 - - 4,813 - 2.498

HU Budapest 2013 401,193 - - 771,641 - - 306.32014 446,556 - - 668,843 - - 290.2

MT Valletta 2013 - 1,135 - 1,719 - - 0.7462014 - 1,325 - 2,083 - - 0.750

NL The Hague 2013 2,062 - - - 2,880 - 1.3292014 2,190 - - - 2,959 - 1.322

AT Vienna 2013 - 2,016 - - 2,789 - 1.2852014 - 1,896 - - 2,607 - 1.278

PL Warsaw 2013 - 5,738 - 8,584 - - 4.3592014 - 4,808 - 7,895 - - 4.047

PT Lisbon 2013 1,120 - - - 1,780 - 0.7332014 1,333 - - - 1,742 - 0.717

RO Bucharest 2013 - - - - 1,392 - 4.3822014 - - - - 1,563 - 3.784

SI Ljubljana 2013 - 1,065 - - 1,471 - 0.8682014 - 1,046 - - 1,263 - 0.808

SK Bratislava 2013 - 1,267 - - 1,956 - 0.9092014 - 1,279 - - 2,028 - 0.894

FI Helsinki 2013 - 2,175 - - 2,925 - 1.5292014 - 2,034 - - 2,864 - 1.503

SE Stockholm 2013 - 21,500 - - 28,500 - 15.372014 - 22,500 - - 28,500 - 15.72

UK London 2013 - - 3,261 - - - 2.6582014 - - 3,196 - - - 2.687

Culham 2013 - - 1,179 - - 1,633 1.0882014 - - 1,224 - - 1,689 1.111


Changes in the average rents of accommodation in the twelve months to 1st July 2014(Values expressed in Euro, except local currencies: CZ, DK, LT, HU, PL, SE, UK)*


Dwelling type weights in Brussels and in duty stations are identified by periodic housing surveys.Rent parity uses a six year model of these averages, updated by indices, applying taper weights.

Rent Parity

EN 32 EN

1.3 Purchasing power parities – analysis of results

1.3.1 Major changes in the economic parities from 2013 to 2014 The calculation of correction coefficients used for salary adjustment in places other than Brussels and Luxembourg involves the revision of some elementary parities each year. Changes in the global parities from one year to the next come mainly from survey prices and rent revisions, but may also be affected by the trend in the price indices used to update the elementary parities at the date of the adjustment and by changes in the consumption structures. Details of the changes in the economic parities from 2013 to 2014, including a decomposition of all the effects, are given in table 3.3.

The simple average change in the global economic parity for all duty stations for the period under review was -0.9%. There were increases in the parity for 8 duty stations and decreases for 23 duty stations, relative to Brussels10. The ten biggest movements in global economic parities during the period can be observed in Athens (-4.9%), Sofia (-4.1%), Rome (-3.8%), Nicosia (-2.9%), Warsaw (-2.5%), Dublin (+2.5%), Karlsruhe (+2.3%), Madrid (-1.9%), Budapest (-1.9%) and Bucharest (-1.8%).

1.3.2 Impact of changes in the expenditure weights The consumption weighting structure used to aggregate the basic heading parities to produce the global economic parity has not been updated during the period under review for any duty station. These weights are derived from surveys conducted amongst active staff in Brussels during 2009-10 and with different timings in different duty stations. Where survey response rates are insufficient to ensure robust statistics (eg. due to population size and mobility), a regional pool weighting structure is applied. This is currently the case for 17 duty stations (Sofia, Prague, Copenhagen, Tallinn, Zagreb, Nicosia, Riga, Vilnius, Budapest, Valletta, Vienna, Warsaw, Bucharest, Ljubljana, Bratislava, Helsinki and Stockholm).

Updating surveys have recently been conducted in the following locations, and weighting structures will be introduced once analysis and validation procedures have been completed:

• Berlin and other duty stations in Germany - 2011 and 2012 (EU institutions, EU agencies, European Schools) and 2013 (Coordinated Organisations, European Patent Office);

• Dublin and other duty stations in Ireland - EU institutions, EU agencies - 2013; • Paris and other duty stations in France - 2011 and 2012 (EU institutions, EU agencies,

European School, EuroControl) and 2013 (Coordinated Organisations); • The Hague and other duty stations in Netherlands - EU institutions, EU agencies, European

School, EuroControl, Coordinated Organisations, European Patent Office - 2013.

1.3.3 Impact of new parities derived from price surveys For the 2014 annual review, new parities obtained from price surveys have been integrated for the following groups:

• House and garden (survey 2013-1), conducted in Spring 2013 • Transport; Hotels, restaurants and cafés (survey 2013-2), conducted in Autumn 2013

10 In accordance with Article 3(2) of Annex XI to the Staff Regulations, Luxembourg = Brussels.

EN 33 EN

The introduction of new prices from these latest consumer price surveys affects 25 elementary parities out of the 80 basic heading classification (17 and 8 respectively), which together account for about 27% of the EU average consumption weight (9% and 18% respectively).

The introduction of the Spring 2013 survey results has led to an increase in the overall parity for 28 locations and a decrease in the parity for 3 locations, with the impact ranging between +1.1% (Dublin) and -0.2% (The Hague and Vienna).

The introduction of the Autumn 2013 survey results has generated an increase in the overall parity for 7 locations and a decrease for 24 locations, with the impact ranging between +0.5% (Dublin, Bucharest and Ljubljana) and -1.3% (Bonn).

For two duty stations, Karlsruhe and Varese, improvements to spatial adjustment ratios have been made for the following price surveys:

• Food, beverages and tobacco (survey 2012-1), conducted in Spring 2012 • Personal appearance (survey 2012-2), conducted in Autumn 2012

These two surveys affect 23 elementary parities out of the 80 basic heading classification (15 and 8 respectively), which together account for about 23% of the EU average consumption weight (15% and 8% respectively). The revision to the parities for the Spring 2012 survey generated changes in the overall parity of +2.6% and +2.4% for Karlsruhe and Varese. The revision to the parities for the Autumn 2012 survey generated changes in the overall parity of -0.2% and -0.1% respectively.

1.3.4 Impact of indexation As regards price indexation, the impact of applying official indices for the year to July 2014 at the level of total consumption was lower than Brussels in 18 places and higher than Brussels in the remaining 13 places. Here it should be recalled that there are important differences between HICP and PPP methodologies (e.g. use of different weights for aggregation purposes). For this reason, the "price updating effect" presented in the table cannot be directly compared with the relative movement of the all-items HICP published separately on the Eurostat website – although other things being equal that movement does give an indication of the likely magnitude and direction of change. It has to be remembered that the impact for each duty station reflects the movement of the national price index relative to the evolution of prices in Brussels11.

1.3.5 Impact of new rent parities Rent surveys are carried out every year in all Member States. A six-year moving average model is used for calculating rent parities: the rent parities for 2014 are based on the relative trend in the real-estate markets in Brussels and other places of employment between 2009 and 2014. These parities are, therefore, affected by the following factors: • introduction of rent data for year 2014; • deletion of the rent data for 2008; • price indices used for updating the rents for 2009 - 2013 to price of 2014; • updated dwelling weights structure derived from housing surveys amongst active staff.

Housing surveys were conducted amongst staff in two duty stations during 2013 (Karlsruhe and Varese) and the results have been integrated.

11 See section 1.4 for details of the movement in the Joint Belgium-Luxembourg Index (JBLI).

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Details of the changes in the rent parities from 2013 to 2014, including a decomposition of all the effects, are given in table 3.4.

The simple average change in the rent parity for all duty stations was -1.9%. There were increases in the rent parity for 10 duty stations and decreases for 21 locations. The ten biggest movements in the rent parity could be observed in Bucharest (-12.4%), Dublin (+10.7%), Sofia (-8.9%), Athens (-7.7%), Warsaw (-7.2%), Ljubljana (-7.0%), Budapest (-5.3%), Nicosia and Madrid (-5.2%), Prague (-4.7%) and Vilnius (-4.6%).

The rent parities, due to their associated high consumption weights (around 23% on average across the EU) influence in a quite significant way the global economic parities. The introduction of the new rent parities has led to an increase in the overall parity for 14 locations and a decrease for 17 locations, with the impact ranging between +0.9% (Dublin) and -3.5% (Vilnius and Bucharest).

In table 3.5, the analysis of correction coefficients calculated with and without the rent element for the same place of employment makes it easier to isolate the effect of rent differences separately from differences arising from other causes.

The correction coefficients for rents (compared to Brussels =100) is very high in London (336.0), Paris (175.5), Stockholm (171.0), Copenhagen and Dublin (158.2) and Helsinki (150.3) whereas they are quite low in Sofia (40.3), Nicosia (54.0), Lisbon (71.7), Vilnius (72.3) and Tallinn (73.4).

For the overall correction coefficient however, the range is smaller: London (150.7), Copenhagen (133.0), Stockholm (127.5) and Helsinki (123.0) compared to Sofia (55.1), Bucharest (69.5), Vilnius (71.4) and Budapest (71.4).

When rents are integrated in the computation, the correction coefficient is increased by 10% or more in London (+33.4%), Paris (+13.5%) and Stockholm (+10.3%). By contrast, the impact is negative in Nicosia (-10.3%), Sofia (-8.0%), Varese (-4.4%), Lisbon (-4.1%), Valletta (-2.9%), Karlsruhe (-2.5%) and Bonn (-2.0%). The impact is near zero in Vilnius (+0.4%), Athens (-0.7%) and Berlin (+0.8%).

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Table 3.3Changes in the economic parities in the twelve months to 1st July 2014

Decomposition of the effects(for staff)

E12-1Food, drinks and tobacco

E12-2 Personal

appearance

E13-1House and

Garden

E13-2 Transport;

HoReCa

BG Sofia 0.0 0.0 0.0 0.5 -0.9 -2.2 -1.7 -4.1

CZ Prague 0.0 0.0 0.0 0.7 -0.1 -0.3 -1.0 -0.7

DK Copenhagen 0.0 0.0 0.0 0.3 -0.7 -0.9 -0.1 -1.4

DE Berlin 0.0 0.0 0.0 0.3 -0.5 0.1 0.6 0.5

Bonn 0.0 0.0 0.0 0.2 -1.3 0.1 0.6 -0.4

Karlsruhe 0.0 2.6 -0.2 0.2 -1.0 0.1 0.6 2.3

Munich 0.0 0.0 0.0 -0.1 -1.2 0.1 0.6 -0.5

EE Tallinn 0.0 0.0 0.0 0.5 0.0 1.6 -2.4 -0.3

IE Dublin 0.0 0.0 0.0 1.1 0.5 0.0 0.9 2.5

EL Athens 0.0 0.0 0.0 0.4 -1.2 -2.4 -1.7 -4.9

ES Madrid 0.0 0.0 0.0 0.2 -0.3 -1.0 -0.9 -1.9

FR Paris 0.0 0.0 0.0 0.2 -0.3 -0.4 0.0 -0.5

HR Zagreb 0.0 0.0 0.0 0.1 -0.4 -1.2 0.0 -1.5

IT Rome 0.0 0.0 0.0 0.1 -0.7 -1.2 -2.0 -3.8

Varese 0.0 2.4 -0.1 0.2 -0.9 -1.2 0.0 0.3

CY Nicosia 0.0 0.0 0.0 0.5 -1.2 -2.5 0.4 -2.9

LV Riga 0.0 0.0 0.0 0.8 -0.8 1.2 -0.7 0.6

LT Vilnius 0.0 0.0 0.0 1.0 -0.3 2.1 -3.5 -0.8

HU Budapest 0.0 0.0 0.0 0.3 -0.5 -0.8 -0.9 -1.9

MT Vallette 0.0 0.0 0.0 0.4 -0.9 -1.0 0.4 -1.2

NL The Hague 0.0 0.0 0.0 -0.2 -0.3 0.4 -0.8 -1.0

AT Vienna 0.0 0.0 0.0 -0.2 -1.0 0.9 -0.7 -1.0

PL Warsaw 0.0 0.0 0.0 0.3 0.1 -1.1 -1.7 -2.5

PT Lisbon 0.0 0.0 0.0 0.6 -0.3 -0.3 -1.1 -1.1

RO Bucharest 0.0 0.0 0.0 0.3 0.5 0.8 -3.5 -1.8

SI Ljubljana 0.0 0.0 0.0 0.2 0.5 -0.3 -1.2 -0.9

SK Bratislava 0.0 0.0 0.0 0.2 -0.6 -1.0 0.0 -1.4

FI Helsinki 0.0 0.0 0.0 0.5 -0.1 -0.1 -0.9 -0.6

SE Stockholm 0.0 0.0 0.0 0.7 -0.1 -0.3 0.5 0.8

UK London 0.0 0.0 0.0 0.2 0.2 1.0 0.1 1.5

Culham 0.0 0.0 0.0 0.1 0.4 0.9 0.3 1.7

CountryPlace of

employment

Price updating

effect(HICP)

New rentsTotal change

%

Update of old surveys Introduction of new surveysImpact of change in PPP

New weights

EN 36 EN

Table 3.4Changes in rent parities in the twelve months to 1st July 2014

Decomposition of the effects(for staff)

Delete surveyIntroduce

survey Price indexDwelling structure

Total change2008 2014 2014 Brussels Other cities

BG Sofia -10.2 3.0 -1.5 0.0 0.0 -8.9

CZ Prague -4.2 -0.5 -0.1 0.0 0.0 -4.7

DK Copenhagen -0.5 0.3 0.3 0.0 0.0 0.0

DE Berlin 1.2 0.7 0.8 0.0 0.0 2.7

Bonn 0.9 1.0 0.8 0.0 0.0 2.8

Karlsruhe 1.3 1.3 0.8 0.0 -0.4 3.1

Munich 2.8 -0.7 0.8 0.0 0.0 2.9

EE Tallinn -3.1 2.2 -0.4 0.0 0.0 -1.3

IE Dublin 1.3 3.6 5.5 0.0 0.0 10.7

EL Athens -7.1 0.3 -1.0 0.0 0.0 -7.7

ES Madrid -4.0 -1.2 0.0 0.0 0.0 -5.2

FR Paris -0.4 -0.3 0.4 0.0 0.0 -0.3

HR Zagreb -3.1 -0.8 -0.4 0.0 0.0 -4.3

IT Rome -4.2 -0.2 0.1 0.0 0.0 -4.3

Varese -2.4 -0.9 0.1 0.0 0.9 -2.3

CY Nicosia -3.0 -1.3 -1.0 0.0 0.0 -5.2

LV Riga 0.3 -0.9 0.4 0.0 0.0 -0.2

LT Vilnius -5.1 0.5 0.0 0.0 0.0 -4.6

HU Budapest -5.3 0.4 -0.3 0.0 0.0 -5.3

MT Valletta -2.3 3.1 -0.2 0.0 0.0 0.5

NL The Hague -1.7 0.7 0.6 0.0 0.0 -0.5

AT Vienna -1.0 -0.8 1.3 0.0 0.0 -0.6

PL Warsaw -4.2 -3.3 0.3 0.0 0.0 -7.2

PT Lisbon -3.0 1.2 -0.4 0.0 0.0 -2.2

RO Bucharest -11.6 -1.3 0.4 0.0 0.0 -12.4

SI Ljubljana -5.4 -2.2 0.5 0.0 0.0 -7.0

SK Bratislava -1.8 0.2 -0.1 0.0 0.0 -1.7

FI Helsinki -1.2 -1.1 0.6 0.0 0.0 -1.7

SE Stockholm 1.6 0.6 0.1 0.0 0.0 2.3

UK London 1.8 -1.6 0.9 0.0 0.0 1.1

Culham 1.7 -0.6 0.9 0.0 0.0 2.0

Place of employment

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Table 3.5Effect of rent on the correction coefficients at 1.7.2014

(for staff)

Weight Correction coefficient Rent effect

Without rent Rent Without rent Rent Overall [5]/[3] (% )[1] [2] [3] [4] [5] [6]

BG Sofia 797.1 203.0 59.9 40.3 55.1 -8.0

CZ Prague 734.6 265.4 70.3 91.1 75.0 6.7

DK Copenhagen 701.4 298.7 124.9 158.2 133.0 6.5

DE Berlin 802.0 198.0 96.4 100.3 97.2 0.8

Bonn 802.0 198.0 96.5 87.9 94.6 -2.0

Karlsruhe 802.0 198.0 97.4 86.8 95.0 -2.5

Munich 802.0 198.0 99.9 141.3 107.7 7.8

EE Tallinn 774.6 225.5 80.2 73.4 78.6 -2.0

IE Dublin 814.7 185.3 106.6 158.2 115.9 8.7

EL Athens 861.1 138.9 87.4 85.6 86.8 -0.7

ES Madrid 799.1 200.9 90.5 110.6 94.5 4.4

FR Paris 767.5 232.5 102.9 175.5 116.8 13.5

HR Zagreb 860.8 139.2 75.6 87.6 77.6 2.6

IT Rome 818.2 181.8 96.2 118.8 100.4 4.4

Varese 845.0 155.0 97.4 77.1 93.1 -4.4

CY Nicosia 810.5 189.4 90.5 54.0 81.2 -10.3

LV Riga 752.5 247.4 75.0 81.3 76.5 2.0

LT Vilnius 758.8 241.2 71.1 72.3 71.4 0.4

HU Budapest 733.7 266.4 65.2 94.0 71.4 9.5

MT Vallette 793.7 206.3 85.9 75.0 83.4 -2.9

NL The Hague 806.5 193.5 102.0 132.2 107.8 5.7

AT Vienna 725.4 274.6 101.0 127.8 107.2 6.1

PL Warsaw 753.9 246.1 67.9 97.5 74.1 9.1

PT Lisbon 766.9 233.1 85.7 71.7 82.2 -4.1

RO Bucharest 734.6 265.4 65.0 86.2 69.5 6.9

SI Ljubljana 748.2 251.8 85.9 80.8 84.7 -1.4

SK Bratislava 757.8 242.3 76.1 89.4 79.0 3.8

FI Helsinki 714.5 285.5 114.6 150.3 123.0 7.3

SE Stockholm 729.6 270.5 115.6 171.0 127.5 10.3

UK London 729.8 270.2 113.0 336.0 150.7 33.4

Culham 764.5 235.5 110.7 138.9 116.7 5.4

Place of employment

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1.4 Changes in the cost of living (Joint Belgium-Luxembourg Index) Annex XI Article 2 of the Staff Regulations requests that Eurostat shall draw up an index to measure the changes in the cost of living for EU officials in Belgium and Luxembourg 12. This index, known as the Joint Belgium-Luxembourg Index of consumer prices (JBLI) is calculated by weighting national inflation as measured by the Harmonised Index of Consumer Prices (HICP) for Belgium, and the Consumer Prices Index (CPI) for Luxembourg, between June of the previous year and June of the current year, according to the distribution of EU staff serving in Belgium and Luxembourg. Precise methodology has been defined by the Working Group on Articles 64 and 65 of the Staff Regulations.

The details of the calculation of this index for the period June 2013 – June 2014 are set out in table 3. During this period the cost of living for EU officials has increased on average by 0.9%.

Table 3Change in the Joint Belgium-Luxembourg Index

June 2013 - June 2014

Groups of consumption Weight Index

1. Food and non-alcoholic beverages 128.2 99.402. Alcoholic beverages and tobacco 20.3 104.103. Clothing and footwear 54.3 101.204. Housing, water, electricity, gas and other fuels 297.6 100.805. Furnishings, household equipment and maintenance of house 74.7 102.006. Health 19.2 100.507. Transport 127.2 100.908. Communications 21.5 97.509. Recreation and culture 91.7 100.4010. Education 14.7 102.0011. Hotels, cafes and restaurants 100.6 102.3012. Miscellaneous goods and services 50.0 102.00

Global index without rents 762.9 100.80Rents index 237.1 101.50Global index 1000.0 100.90

For the period under review the ratio between EU officials in Belgium and EU officials in Luxembourg was 78.3% : 21.7%.

12 This definition was introduced by Regulation 1023/2013 and applies with effect from 1.1.2014. For the

calendar year 2013, the Working Group on Articles 64 and 65 of the Staff Regulations approved the use of the Belgian HICP. Regulation 723/2004 defined a “Brussels International Index” which applied for the period 2004-2012.

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2. EQUIVALENCE OF PURCHASING POWER OF EU PENSIONERS IN THE MEMBER STATES 2.1 Economic parities and correction coefficients

The correction coefficients for pensioners with a reference date of 1 July 2014 have been calculated in accordance with the agreed methodology on the basis of the following information:

a) Parities for all goods and services, except for rents, as used for the calculation of the correction coefficients for active staff. These parities are based on bilateral comparison of prices of about 3000 goods and services between different capital cities and Brussels (for more details see section 1.1 above).

b) For calculating country rent parities a two-stage procedure has been applied. Firstly a spatial adjustment factor is calculated in the form of national/capital ratio of market rents derived from an official database like CPI, household budget survey, housing register, etc. Secondly, with the help of this adjustment factor the capital city rent parity from Article 64 estate agency rent surveys is transformed to the country rent parity.

National Statistical Institutes are typically requested each year to check and if possible update their spatial adjustment factor for rents. For 2014, this was the case for 11 countries: Czech Republic, Ireland, Spain, Croatia, Italy, Latvia, Lithuania, Hungary, Austria, Poland, Finland. Adjustment factors for Estonia and Malta were not revised.

As in previous years, in the absence of fresh data from an appropriate source the following method is applied: average rent values from Article 64 exercise for duty station and Brussels (ie. bilateral parity with Brussels) are compared with average rent values from European Comparison Programme exercise for duty station country and Belgium (ie. bilateral parity with Belgium). For 2014 this method was used for 13 countries: Bulgaria, Denmark, Germany, Greece, France, Cyprus, Netherlands, Portugal, Romania, Slovenia, Slovakia, Sweden, United Kingdom.

c) Consumption weights for the pensioners are calculated on the basis of a wide scale family budget survey carried out in 200213. Consumption weights for Member States which joined the European Union in 2004, 2007 and 2013 have been estimated as the average of the values for duty stations outside Brussels, adjusted for rents (this is a similar method to the estimation of values for staff duty stations with insufficient individual sample response).

The details of the calculated economic parities at the level of 12 main consumption groups, are shown in table 4.1 for all countries apart from Belgium and Luxembourg. This table also includes information about the consumption weights by country and by expenditure groups. Table 4.2 presents the rent ratios used in 2013 and 2014.

The correction coefficients applicable to the EU pensioners are determined on the basis of the relationships between the economic parities and the exchange rates fixed by the Commission and specified in the Staff Regulations for the relevant countries.

The correction coefficient operates as a percentage adjustment to pensions (only for the pension rights acquired before 1 May 2004; the correction coefficient being 100% for the

13 An updating survey was conducted during 2012-13, which generated significant response; and work is at an

advanced stage in processing the results.

EN 40 EN

pension rights acquired from that date) to take account of the cost of living differences between Belgium and the Member States, except Luxembourg where, according to the Staff Regulations, a correction coefficient of 100% is applied. The correction coefficient applies in full for transfers into, or out of, the pension scheme of European Officials.

EN 41 EN

Table 4.1 (Continued on next page)Economic parities of the 12 main expenditure groups for each country

1.07.2014(for pensioners)

Expenditure BE BG CZ DK DE EE IE ELGroups* Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 99.0 97.4 1.329 96.6 20.74 87.1 9.326 66.9 0.994 85.9 0.786 96.9 1.111 90.1 0.9172 26.4 25.4 1.443 25.1 25.74 22.7 9.978 22.4 0.866 22.4 1.005 25.2 1.877 23.5 1.2653 75.8 77.3 1.423 76.6 22.71 69.1 8.027 76.6 0.857 68.2 0.875 76.9 0.864 71.5 0.8464 176.3 109.2 0.5872 117.0 17.17 203.9 11.78 187.1 1.051 214.5 1.026 114.0 0.873 176.0 0.7485 119.5 128.2 0.9796 127.1 17.70 114.6 7.894 130.4 0.917 113.1 0.679 127.5 0.863 118.6 0.7946 36.1 34.0 1.069 33.7 16.71 30.4 9.374 32.0 0.929 30.0 0.703 33.8 1.152 31.5 0.7467 164.0 192.3 1.341 190.6 20.56 171.9 10.55 163.8 1.027 169.6 0.775 191.3 1.172 177.9 0.9818 17.2 18.9 1.117 18.7 20.96 16.9 6.078 16.4 0.673 16.7 0.519 18.8 0.876 17.5 1.0319 118.2 149.2 1.343 147.9 21.70 133.4 9.509 149.8 1.039 131.6 0.882 148.4 1.138 138.0 0.91810 9.4 10.7 0.3420 10.6 10.45 9.6 11.22 1.2 1.290 9.4 0.249 10.7 1.535 9.9 0.55911 74.8 71.1 0.8913 70.4 14.17 63.5 10.55 68.0 0.833 62.7 0.702 70.7 1.164 65.7 0.67012 83.3 86.3 1.411 85.5 21.44 77.1 10.23 85.5 0.908 76.1 0.781 85.8 1.249 79.8 0.820

Rents 132.4 62.0 0.4969 70.2 19.69 161.7 11.68 136.5 1.083 67.0 0.826 172.8 1.281 132.3 0.760Total w ithout rents 867.6 938.0 1.183 929.8 19.34 838.3 9.505 863.5 0.947 933.0 0.800 827.2 1.029 867.7 0.861

Global parity 1.095 19.35 9.794 0.964 0.801 1.063 0.847

Expenditure BE ES FR HR IT CY LV LTGroups* Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 99.0 90.9 0.836 94.5 0.996 95.5 6.438 95.5 1.039 69.0 0.966 99.8 0.797 106.3 2.5422 26.4 23.7 0.832 20.4 0.940 24.4 7.913 17.4 1.078 23.1 1.127 26.0 1.097 19.3 3.2783 75.8 72.1 0.863 57.6 0.962 75.9 5.659 71.8 0.964 79.0 0.841 79.2 0.919 79.9 3.1144 176.3 169.0 0.871 194.9 1.240 123.0 4.010 212.4 0.836 161.9 0.630 87.4 0.607 123.0 1.8625 119.5 119.6 0.887 118.4 1.095 126.6 4.821 102.1 0.939 134.5 0.798 131.4 0.623 113.7 2.2606 36.1 31.7 0.783 18.9 0.924 33.8 4.852 45.5 1.054 33.0 0.974 34.8 0.757 50.6 2.5447 164.0 179.4 1.032 177.0 1.045 190.4 6.538 193.4 0.956 168.9 0.966 197.0 0.809 215.3 2.7618 17.2 17.6 1.132 19.4 0.834 18.6 4.856 14.6 0.855 16.9 0.435 19.4 0.657 16.3 1.7249 118.2 139.2 0.983 131.8 1.044 146.8 6.165 119.8 1.001 154.4 1.113 152.9 0.820 133.4 2.77310 9.4 10.0 0.858 14.9 1.009 10.0 4.674 4.7 1.015 1.2 0.785 11.0 0.315 5.2 0.913411 74.8 66.3 0.780 71.7 1.171 69.2 4.831 41.4 0.917 70.1 0.867 72.8 0.714 46.1 2.07012 83.3 80.5 0.877 80.5 1.038 86.0 5.638 81.6 0.953 88.1 0.839 88.4 0.829 90.8 2.626

Rents 132.4 124.9 0.907 148.8 1.322 73.8 4.027 144.2 0.828 109.7 0.595 39.0 0.668 47.1 1.713Total w ithout rents 867.6 875.1 0.901 851.2 1.035 926.2 5.659 855.8 0.965 890.3 0.901 961.0 0.758 952.9 2.540

Global parity 0.902 1.071 5.469 0.945 0.858 0.748 2.456* For explanation of codes see table 3.1

EN 42 EN

Table 4.1 (Continuation)Economic parities of the 12 main expenditure groups for each country

1.07.2014(for pensioners)

Expenditure BE HU MT NL AT PL PTGroups* Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 99.0 103.7 235.9 96.4 0.908 88.7 0.868 87.9 1.108 97.8 2.730 90.5 0.8132 26.4 22.4 217.3 25.1 1.149 23.1 1.005 22.9 1.011 25.5 4.723 23.6 0.8593 75.8 63.3 214.3 76.5 0.866 70.4 0.919 69.7 0.844 77.6 3.041 71.8 0.8064 176.3 116.1 149.2 118.3 0.726 188.6 1.198 196.2 1.254 105.4 2.240 172.5 0.8125 119.5 130.0 171.4 126.9 0.749 116.8 0.932 115.7 0.991 128.8 2.591 119.1 0.8126 36.1 20.7 189.4 33.7 0.925 31.0 1.161 30.7 1.038 34.1 2.321 31.6 0.8287 164.0 194.3 242.7 190.3 0.924 175.2 1.166 173.5 1.039 193.1 3.181 178.6 1.0468 17.2 21.3 272.5 18.7 0.629 17.2 0.977 17.1 0.882 19.0 2.489 17.6 0.9809 118.2 144.7 228.8 147.7 0.930 135.9 1.026 134.7 1.046 149.9 3.205 138.6 0.89910 9.4 16.4 93.40 10.6 0.670 9.8 0.950 9.7 0.915 10.8 1.206 10.0 0.97511 74.8 78.8 153.2 70.3 0.820 64.7 1.090 64.1 0.895 71.4 2.634 66.0 0.68112 83.3 88.4 204.3 85.4 0.813 78.6 1.011 77.8 1.023 86.6 3.010 80.1 0.782


Global parity 197.5 0.842 1.047 1.044 2.805 0.852

Expenditure BE RO SI SK FI SE UKGroups* Weight Weight Parity Weight Parity Weight Parity Weight Parity Weight Parity

1 99.0 97.3 2.965 91.1 0.891 97.9 0.864 88.7 1.153 88.0 10.25 83.1 0.80392 26.4 25.3 3.437 23.7 1.024 25.5 0.940 23.1 1.597 22.9 14.04 21.6 1.2703 75.8 77.2 3.218 72.3 0.873 77.7 0.830 70.4 1.010 69.8 9.826 65.9 0.67144 176.3 110.4 2.067 167.1 0.658 105.0 0.555 188.5 1.240 195.1 12.02 240.3 1.3445 119.5 128.1 2.348 119.9 0.734 128.8 0.625 116.8 1.029 115.9 9.757 109.4 0.91916 36.1 34.0 2.894 31.8 0.701 34.2 0.659 31.0 0.988 30.7 9.467 29.0 0.69427 164.0 192.0 3.297 179.8 0.914 193.2 0.772 175.2 1.152 173.8 10.21 164.0 0.93668 17.2 18.9 2.233 17.7 0.732 19.0 1.018 17.2 0.710 17.1 6.791 16.1 0.85749 118.2 149.0 3.239 139.5 0.928 149.9 0.892 135.9 1.185 134.8 10.76 127.3 0.881410 9.4 10.7 1.005 10.0 0.650 10.8 0.361 9.8 1.190 9.7 10.62 9.1 1.44311 74.8 71.0 2.047 66.4 0.739 71.4 0.624 64.7 1.114 64.2 11.61 60.6 0.959612 83.3 86.1 3.959 80.7 0.905 86.7 0.797 78.6 1.254 77.9 11.08 73.6 0.9386


Global parity 2.800 0.814 0.731 1.145 10.66 0.965* For explanation of codes see table 3.1

EN 43 EN

Rent ratios applied for the estimation of the pensioners rent parities

Country Ratio applied in

2013 2014 Diff.

BE 0.91 0.89 -0.02

BG * 0.50 0.56 0.06

CZ 0.70 0.70 0.00

DK * 0.87 0.88 0.01

DE * 0.96 0.96 0.00

EE 1.00 1.00 0.00

IE 0.82 0.72 -0.10

EL * 1.14 0.79 -0.35

ES 0.71 0.73 0.02

FR * 0.76 0.67 -0.09

HR 0.59 0.54 -0.05

IT 0.68 0.62 -0.06

CY * 0.96 0.98 0.02

LV 0.75 0.73 -0.02

LT 0.62 0.61 -0.01

HU 0.51 0.51 0.00

MT 1.00 1.00 0.00

NL * 0.84 0.84 0.00

AT 0.94 0.94 0.00

PL 0.51 0.50 -0.01

PT * 0.91 0.98 0.07

RO * 0.48 0.53 0.05

SI * 0.63 0.71 0.08

SK * 0.52 0.55 0.03

FI 0.75 0.75 0.00

SE * 0.84 0.68 -0.16

UK * 0.59 0.51 -0.08

* Country PPP rent (estimated from ECP data)

Table 4.2

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2.2 Purchasing power parities for pensioners - analysis of results

2.2.1 Main changes in the economic parities from 2013 to 2014 The simple average change in the global economic parity for all Member States was -0.8%. There were increases for 7 Member States and decreases for 19 Member States. The five biggest changes in the global parity for the period under review can be observed for Greece (-7.5%), Italy (-3.5%), Croatia (-2.2%), Sweden (-2.1%), France (-1.9%).

One of the main differences in the calculation of parity values for pensioners by comparison to those established for active staff arises from the aggregation using specific expenditure weights for pensioners rather than staff consumption patterns. This can affect the impact of the individual components (introduction of new price surveys, price updating using indices, new rents). A decomposition of the changes in the economic parities for the period 2013-2014 is shown in Table 4.3 below.

The pensioner value computed for Denmark for July 2013 did not properly reflect the specific historic agreed approach to establish rent ratio between the capital city, Copenhagen, and the rest of the country. This was corrected for the intermediate adjustment at January 2014. For the July 2014 calculation the rent ratio methodology has been aligned with that applied for other countries (see section 2.1 earlier).

2.2.2 Impact of rents on the overall parity for pensioners In 2014, for 17 out of the 26 member states (i.e. excluding BE and LU), the rent correction coefficient (ratio between the rent parity and the exchange rate) is under 100. This means that the average rents are lower in these places than in Belgium. For the remaining 9 countries, the rent correction coefficient is greater than 100.

Moreover, for 14 Member States14, the rent correction coefficient is lower than the correction coefficient without rent. This means that, for these places, the rents lead to a reduction of the global correction coefficient.

Details of the impact of rent on the overall parity are given in table 4.4

14 The countries which joined the European Union in 2004, 2007 and 2013 (with the exception of Czech

Republic and Estonia) plus Greece, Italy and Portugal.

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Table 4.3

Changes in the economic parities in the twelve months to 1st July 2014

Decomposition of the effects(for PENSIONERS)

Introduction of new surveys

E13-1House and

Garden

E13-2 Transport;

HoReCa

BG 0.0 0.7 -0.1 -2.4 -0.9 1.2 -1.5

CZ 0.0 0.8 -0.1 -0.5 -0.5 0.2 -0.1

DK -3.7 0.4 -0.5 -1.1 0.0 4.4 -0.7

DE 0.0 0.5 -1.2 0.0 0.4 0.3 -0.1

EE 0.0 0.7 1.0 -0.7 -0.1 0.2 1.1

IE 0.0 1.4 1.1 -1.8 1.5 -1.6 0.5

EL 0.0 0.4 0.4 -1.7 -2.5 -4.3 -7.5

ES 0.0 0.3 -0.4 -1.0 -0.8 0.6 -1.1

FR 0.0 0.2 -0.2 -0.4 0.0 -1.4 -1.9

HR 0.0 0.0 -0.2 -1.3 0.0 -0.6 -2.2

IT 0.0 0.1 -0.6 -0.5 -1.6 -1.0 -3.5

CY 0.0 0.6 -0.4 -1.4 -0.6 0.5 -1.3

LV 0.0 1.2 -0.1 0.6 0.0 -0.1 1.6

LT 0.0 1.1 -0.1 -0.7 -0.4 0.0 0.1

HU 0.0 0.5 0.0 -0.2 -0.5 0.1 -0.1

MT 0.0 0.5 -0.5 -0.5 0.1 0.2 -0.3

NL 0.0 -0.2 -0.4 -0.6 -0.1 0.3 -0.8

AT 0.0 -0.1 -0.9 0.3 -0.1 0.3 -0.4

PL 0.0 0.2 0.2 -1.4 -0.7 0.1 -1.6

PT 0.0 0.7 -0.2 -1.3 -0.3 1.2 0.1

RO 0.0 0.2 0.0 0.9 -1.2 1.0 0.8

SI 0.0 0.1 0.2 -0.2 -0.9 1.8 0.9

SK 0.0 0.2 -0.1 -0.8 -0.1 0.6 -0.2

FI 0.0 0.4 -0.1 -0.7 -0.2 0.3 -0.4

SE 0.0 0.7 0.1 -0.6 0.3 -2.6 -2.1

UK 0.0 0.3 0.7 0.5 0.2 -2.0 -0.3

CountryNew rents

Impact of change in PPP

Price updating effect

(HICP)

TotalAdjust rents

ratioUpdate rent

ratio

EN 46 EN

Table 4.4Effect of rent on the correction coefficients at 1.7.2014

(for pensioners)

Weight Correction coefficient Rent effect

Without rent

Rent Without rent

Rent Overall [5]/[3] (% )

[1] [2] [3] [4] [5] [6]

BG 938.0 62.0 60.5 25.4 56.0 -7.4 CZ 929.8 70.2 70.4 71.7 70.5 0.1 DK 838.3 161.7 127.5 156.6 131.3 3.0 DE 863.5 136.5 94.7 108.3 96.4 1.8 EE 933.0 67.0 80.0 82.6 80.1 0.1 IE 827.2 172.8 102.9 128.1 106.3 3.3 EL 867.7 132.3 86.1 76.0 84.7 -1.6 ES 875.1 124.9 90.1 90.7 90.2 0.1 FR 851.2 148.8 103.5 132.2 107.1 3.5 HR 926.2 73.8 74.7 53.2 72.2 -3.3 IT 855.8 144.2 96.5 82.8 94.5 -2.1 CY 890.3 109.7 90.1 59.5 85.8 -4.8 LV 961.0 39.0 75.8 66.8 74.8 -1.3 LT 952.9 47.1 73.6 49.6 71.1 -3.4 HU 934.6 65.4 65.3 53.9 64.0 -2.0 MT 928.4 71.6 84.4 84.3 84.2 -0.2 NL 854.4 145.6 101.8 124.9 104.7 2.8 AT 846.5 153.5 100.1 135.1 104.4 4.3 PL 942.0 58.0 69.1 54.8 67.6 -2.2 PT 871.4 128.6 86.2 79.0 85.2 -1.2 RO 936.7 63.3 65.4 51.4 63.8 -2.4 SI 877.1 122.9 84.1 64.5 81.4 -3.2 SK 942.4 57.6 75.2 55.3 73.1 -2.8 FI 854.5 145.5 112.7 126.7 114.5 1.6 SE 847.6 152.4 113.7 130.7 115.9 1.9 UK 799.9 200.1 110.2 192.7 120.7 9.5

Country

EN 47 EN

2.3 Comparison of correction coefficients for active staff and pensioners

Table 4.5 compares the pensioner correction coefficients (CC) with those for active staff at July 2014. Among all Member States, London has the highest capital-based CC (150.7) and Denmark has the highest country-based CC (131.3), whilst Sofia has the lowest capital-based CC (55.1) and the lowest country-based CC (56.0). The biggest differences between capital city CCs and country CCs can be observed in Ireland, France, Hungary, Romania, Finland, Sweden and United Kingdom. By contrast, in Bulgaria, Denmark, Germany, Estonia, Greece, Lithuania and Malta the two CCs are nearly at the same level. In all except five countries (Bulgaria, Estonia, Cyprus, Malta and Portugal) the country CCs are lower than the capital city CCs. Without rents, the two sets of CCs are closer. The country CC without rent is slightly higher than the capital city CC without rent in 8 of the Member States (Bulgaria, Czech Republic, Denmark, Latvia, Lithuania, Hungary, Poland and Romania). It should be mentioned that the Staff Regulations set out specific rules for the application of the pensioner CC (see section 2.1 earlier).

EN 48 EN

Table 4.5Pensioners correction coefficients and Staff correction coefficients

at 1.7.2014

Correction coefficients for pensioners Correction coefficients for staff

Country without

rents rents Total Capitals without

rents rents Total

BE 100.0 100.0 100.0 Brussels 100.0 100.0 100.0

BG 60.5 25.4 56.0 Sofia 59.9 40.3 55.1

CZ 70.4 71.7 70.5 Prague 70.3 91.1 75.0

DK 127.5 156.6 131.3 Copenhagen 124.9 158.2 133.0

DE 94.7 108.3 96.4 Berlin 96.4 100.3 97.2

EE 80.0 82.6 80.1 Tallinn 80.2 73.4 78.6

IE 102.9 128.1 106.3 Dublin 106.6 158.2 115.9

EL 86.1 76.0 84.7 Athens 87.4 85.6 86.8

ES 90.1 90.7 90.2 Madrid 90.5 110.6 94.5

FR 103.5 132.2 107.1 Paris 102.9 175.5 116.8

HR 74.7 53.2 72.2 Zagreb 75.6 87.6 77.6

IT 96.5 82.8 94.5 Rome 96.2 118.8 100.4

CY 90.1 59.5 85.8 Nicosia 90.5 54.0 81.2

LV 75.8 66.8 74.8 Riga 75.0 81.3 76.5

LT 73.6 49.6 71.1 Vilnius 71.1 72.3 71.4

HU 65.3 53.9 64.0 Budapest 65.2 94.0 71.4

MT 84.4 84.3 84.2 Valletta 85.9 75.0 83.4

NL 101.8 124.9 104.7 The Hague 102.0 132.2 107.8

AT 100.1 135.1 104.4 Vienna 101.0 127.8 107.2

PL 69.1 54.8 67.6 Warsaw 67.9 97.5 74.1

PT 86.2 79.0 85.2 Lisbon 85.7 71.7 82.2

RO 65.4 51.4 63.8 Bucharest 65.0 86.2 69.5

SI 84.1 64.5 81.4 Ljubljana 85.9 80.8 84.7

SK 75.2 55.3 73.1 Bratislava 76.1 89.4 79.0

FI 112.7 126.7 114.5 Helsinki 114.6 150.3 123.0

SE 113.7 130.7 115.9 Stockholm 115.6 171.0 127.5

UK 110.2 192.7 120.7 London 113.0 336.0 150.7

EN 49 EN

3. EQUIVALENCE OF PURCHASING POWER OF EU OFFICIALS OUTSIDE THE EUROPEAN UNION

3.1 Economic parities and correction coefficients

As at July 2014, correction coefficients are compiled for a list of 144 Extra-EU duty stations. However, the application of Extra-EU correction coefficients is only likely to be requested in practice where the cost of living is higher than in Brussels. Table 9.1 shows the places where the correction coefficient is greater than 100 at 1st July 2014 (or at 1st July 2013).

With the exception of the nine duty stations in Extra-EU countries which participate in the European Comparison Programme (ECP) coordinated by Eurostat15 or the seven which participate in the linked programme coordinated by the Organisation for Economic Cooperation and Development16, the source of price data is the rolling cycle of surveys conducted by the United Nations International Civil Service Commission (UN.ICSC).

For the July 2014 exercise, new parities derived from price surveys have been integrated for 28 locations (these are highlighted in table 8 and table 9 earlier).

For all locations, initial “place-to-place” survey-based parities are subsequently updated using the ratio between national consumer price index and the Joint Belgium-Luxembourg Index. For Iceland, Norway, Switzerland and Turkey, the national consumer price index is the harmonised index of consumer prices. For other duty station locations, the price index information is compiled from national sources.

Basic heading parities are aggregated to produce global economic parity using expenditure weights obtained from direct survey amongst staff in 2010. Due to the low population sizes in many individual duty stations and the low response rate from survey participants, a global pool structure is applied.

15 Iceland, Norway, Switzerland, Turkey, Albania, Bosnia-Herzegovina, FYROMacedonia, Montenegro, Serbia 16 Australia, Canada, Japan, Mexico, New Zealand, South Korea, United States of America (Washington)

EN 50 EN

EconomicParities

ExchangeRate


Code Country City Jul-14 Jul-14 Jul-14 Jul-13 Jul-13 Jul-13Jul 2014-Jul 2013

Jul 2014-Jul 2013

Jul 2014-Jul 2013

97 (4) Angola Luanda 188.8 132.977 142.0 172.1 127.217 135.3 9.7 -4.5 5.03 Venezuela Caracas 11.93 8.56984 139.2 7.313 8.19986 89.2 63.1 -4.5 56.143 (1) Democratic Republic of Congo Kinshasa 1.838 1.362000 134.9 1.944 1.30320 149.2 -5.5 -4.5 -9.6

103 (5) Norway Oslo 10.92 8.36800 130.5 10.38 7.88100 131.7 5.2 -6.2 -0.982 Switzerland Geneva 1.503 1.21620 123.6 1.536 1.23260 124.6 -2.1 1.3 -0.8

101 Solomon Islands Honiara 11.92 9.82683 121.3 11.60 9.33521 124.3 2.8 -5.3 -2.4235 (5) Switzerland Bern 1.469 1.21620 120.8 1.520 1.23260 123.3 -3.4 1.3 -2.0207 (4) Singapore Singapore 2.054 1.70150 120.7 1.990 1.64650 120.9 3.2 -3.3 -0.233 Congo Brazzaville 783.5 655.957 119.4 799.9 655.957 121.9 -2.1 -2.122 Papua New Guinea Port Moresby 3.838 3.30583 116.1 3.680 2.85144 129.1 4.3 -15.9 -10.119 (4) Sierra Leone Freetown 6878 5967.19 115.3 6948 5646.66 123.0 -1.0 -5.7 -6.3

236 (4) Eritrea Asmara 23.69 20.7603 114.1 24.67 20.0367 123.1 -4.0 -3.6 -7.365 Chad Ndjamena 745.8 655.957 113.7 736.8 655.957 112.3 1.2 1.2

234 West Bank — Gaza Strip East Jerusalem 5.255 4.67080 112.5 5.344 4.73800 112.8 -1.7 1.4 -0.3307 (5) Iceland Reykjavík 173.8 154.850 112.2 157.5 162.050 97.2 10.3 4.4 15.4190 New Zealand Wellington 1.741 1.55420 112.0 1.730 1.66400 104.0 0.6 6.6 7.7114 Russia Moscow 51.00 45.8969 111.1 47.88 42.7350 112.0 6.5 -7.4 -0.8106 New Caledonia NouMea 130.6 119.332 109.4 133.4 119.332 111.8 -2.1 -2.168 (4) Barbados Bridgetown 2.974 2.73859 108.6 3.182 2.62036 121.4 -6.5 -4.5 -10.563 (4) Sudan Khartoum 8.689 8.10479 107.2 5.479 7.25179 75.6 58.6 -11.8 41.876 Gabon Libreville 697.9 655.957 106.4 648.2 655.957 98.8 7.7 7.734 Central African Republic Bangui 695.9 655.957 106.1 666.9 655.957 101.7 4.3 4.320 (4) Senegal Dakar 677.8 655.957 103.3 610.3 655.957 93.0 11.1 11.153 Vanuatu Port Vila 134.8 130.534 103.3 143.8 127.470 112.8 -6.3 -2.4 -8.4

302 (1)(4) Timor Leste Dili 1.400 1.36200 102.8 1.588 1.30320 121.9 -11.8 -4.5 -15.785 Australia Canberra 1.470 1.44600 101.7 1.485 1.39950 106.1 -1.0 -3.3 -4.138 (4) Israel Tel-Aviv 4.747 4.67080 101.6 5.076 4.73800 107.1 -6.5 1.4 -5.1

105 Hong Kong Hong Kong 10.72 10.5573 101.5 10.45 10.1092 103.4 2.6 -4.4 -1.84 (4) Brazil Brasilia 3.030 2.99050 101.3 2.581 2.84200 90.8 17.4 -5.2 11.68 (5) Japan Tokyo 139.4 138.090 100.9 144.0 127.930 112.6 -3.2 -7.9 -10.446 (1) Liberia Monrovia 1.372 1.36200 100.7 1.504 1.30320 115.4 -8.8 -4.5 -12.7

104 Mali Bamako 657.6 655.957 100.3 663.7 655.957 101.2 -0.9 -0.9135 Azerbaijan Baku 1.025 1.06822 96.0 1.024 1.02236 100.2 0.1 -4.5 -4.237 Benin Cotonou 622.9 655.957 95.0 657.7 655.957 100.3 -5.3 0.0 -5.3126 (4) Nigeria Abuja 200.4 211.439 94.8 214.8 202.198 106.2 -6.7 -4.6 -10.750 (4) Jordan Amman 0.8586 0.965658 88.9 0.924 0.923969 100.0 -7.1 -4.5 -11.1

(1) 1 euro = USD (Cuba, El Salvador, Equateur, Liberia, Timor oriental, Panama, Rep Dem Congo)(2) Brussels = 100%(4) UN P2P processed (12 Duty Stations )(5) OECD PPP processed (4 Duty stations )

ExchangeRate(1)


(2)

CHANGE (in %)

Table 9.1Summary of the duty stations where the cost of living is higher than in Brussels at 1st July 2014 (or at July 2013)


EconomicParities

ExchangeRate(1)


(2)

EconomicParities

Date post:	03-Aug-2020
Category:	Documents
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EN - Europa · the 2014 annual adjustment of remuneration and pensions of EU officials ......

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